Break-Even Calculator
Calculate how many units you need to sell to cover fixed and variable costs.
How this calculator works
How to use this calculator
Enter your fixed costs, selling price per unit, and variable cost per unit. The calculator estimates the number of units you need to sell to break even.
Formula used
Break-Even Units = Fixed Costs ÷ (Selling Price per Unit − Variable Cost per Unit). The difference between price and variable cost is the contribution margin per unit.
Example calculation
If fixed costs are $10,000, selling price is $50, and variable cost is $30, the break-even point is 500 units.
What the result means
The break-even point is where total revenue covers total costs. Sales above this point may contribute to profit.
Frequently asked questions
What are fixed costs?
Fixed costs are costs that do not change directly with the number of units sold, such as rent or salaries.
What are variable costs?
Variable costs change with each unit sold, such as materials, packaging, or direct labor.
Why must price be greater than variable cost?
If price is not higher than variable cost, each sale does not contribute toward fixed costs.