⚖️ Break-even Calculator
Determine how many units you need to sell, or how much revenue you need, before your business starts turning a profit.
What This Calculator Does
The break-even point is the level of sales at which a business’s total revenue exactly equals its total costs, meaning it is neither making a profit nor a loss. This calculator tells you how many units you need to sell, and how much revenue that represents, to reach that point.
The Formula
Break-even point in units is calculated as: Break-even Units = Fixed Costs / (Price per Unit – Variable Cost per Unit). The denominator, price minus variable cost, is called the contribution margin per unit, since it is the amount each unit sold contributes toward covering fixed costs before turning a profit. Multiplying break-even units by the selling price gives the break-even revenue.
Important Notes
This model assumes costs and prices stay constant regardless of volume, which is a simplification of real business conditions where costs can change at different production levels. It is intended for general business planning and educational purposes only and does not replace advice from a qualified accountant or financial professional.