Break Even Calculator
Calculate break-even units, revenue, and contribution margin from fixed and variable costs.
Break-even point
Formula
Contribution Margin = Selling Price - Variable Cost
Break-even Units = Fixed Costs / Contribution Margin
Break-even Revenue = Break-even Units * Selling Price Example
If fixed costs are $12,000, selling price is $50, and variable cost is $20, contribution margin is $30. Break-even units are 400 and break-even revenue is $20,000.
Read how to calculate break-even point for the full process.
Common mistakes
- Confusing fixed costs with variable costs.
- Ignoring platform fees, payment fees, or returns in variable cost.
- Assuming break-even means the business is already sustainably profitable.
Related tools
Use the Markup Calculator to set prices from cost, or the ROI Calculator to compare investment returns.
FAQ
What is break-even point?
Break-even point is the sales level where revenue covers fixed and variable costs.
How do you calculate break-even units?
Divide fixed costs by contribution margin per unit.
What is contribution margin?
Contribution margin per unit is selling price per unit minus variable cost per unit.
What if variable cost is higher than selling price?
The business cannot break even on unit sales unless price increases or variable cost decreases.
Disclaimer
This calculator is for general business planning and educational use. It does not replace accounting, tax, or financial advice.