Break-Even Point Calculator
Break-even is the sales volume at which total revenue exactly covers total costs — the point where a business stops losing money. It is calculated by dividing fixed costs by the contribution margin, which is what each unit contributes after its own variable cost.
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Input
Result
- Break-Even Units
- 34 units
- Break-Even Sales Revenue
- $1666.67
- Contribution Margin per Unit
- $30.00
About
What the Break-Even Point Calculator does
The contribution margin is the number that actually drives the answer. If a product sells for £50 and costs £30 to make, each sale contributes £20 toward fixed costs. Raising the price by £5 lifts the contribution to £25 and cuts the break-even volume by a fifth — usually far more effective than trying to sell more units.
How it works
Using the Break-Even Point Calculator
- 1Enter your total fixed costs — rent, salaries and anything that does not change with volume.
- 2Enter the selling price per unit.
- 3Enter the variable cost per unit — materials, shipping, per-sale fees.
- 4Contribution margin is price minus variable cost.
- 5Break-even units are fixed costs divided by contribution margin.
Use cases
What people use it for
- Deciding whether a product line is viable
- Setting a sales target that covers costs
- Testing how a price change affects required volume
- Preparing figures for a business plan or investor deck
FAQ
Frequently asked questions
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