Calculator

Break-even Calculator

Find the sales volume and revenue needed to cover fixed and variable costs.

UNDERSTAND THE ANSWER

How is this calculated?

Price minus variable cost is the contribution margin per unit. Each sale contributes that amount toward fixed costs until profit reaches zero.

Break-even units formulaBreak-even units = Fixed costs ÷ (Price − Variable cost)

A practical example

With $25,000 in fixed costs and a $45 contribution margin, the business needs to sell 556 units to break even.

Calculation assumptions

  • Selling price and variable cost per unit stay constant.
  • All fixed costs belong to the same analysis period.
  • Every unit produced is sold and product mix does not change.