Finance & Economics / Business & Investment
Break-Even Point Calculator
Formula
Break-Even Units = Fixed Costs / (Selling Price - Variable Cost)
Break-Even Revenue = Break-Even Units × Selling Price
Find the sales volume needed to cover fixed and variable costs so pricing and production targets are grounded in cost structure.
Formula
Worked Example
Fixed costs40,000
Price per unit55
Variable cost per unit30
Result: 1,600 units
At a $25 contribution margin per unit, selling 1,600 units covers $40,000 of fixed costs with no profit or loss.
Frequently Asked Questions
What happens if variable cost rises?
Higher variable cost shrinks contribution margin, which raises the break-even unit threshold.
Can break-even be calculated in revenue instead of units?
Yes. Multiply break-even units by selling price to estimate required break-even revenue.