Break-Even Calculator — Find Your Break-Even Point
Free break-even calculator. Find how many units you need to sell to cover your costs.
Formula: Fixed Costs / (Price per Unit - Variable Cost per Unit)
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What Is This Calculator?
The break-even point is the number of units you must sell for total revenue to equal total costs. Below this point, you operate at a loss. Above it, every additional sale generates profit. Break-even analysis is essential for pricing decisions, launch planning, and investor pitches.
How to Calculate
To calculate break-even: 1) Add up all fixed costs (rent, salaries, insurance). 2) Determine the selling price per unit. 3) Determine the variable cost per unit (materials, shipping). 4) Subtract variable cost from price to get contribution margin. 5) Divide fixed costs by contribution margin. Formula: Break-Even Units = Fixed Costs / (Price − Variable Cost).
Examples
Example: Fixed costs are $10,000/month. You sell a product for $50 with $20 variable cost. Contribution margin = $30. Break-even = $10,000 / $30 = 334 units per month.
Recommended Tools
Business planning software like LivePlan can model break-even scenarios with different pricing and cost assumptions.
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