Break-Even Point Calculator
Formula
Break-Even Units = Fixed Costs / (Selling Price - Variable Cost)
Break-Even Revenue = Break-Even Units × Selling Price
About This Calculator
Break-Even Point Calculator is designed to reduce manual errors and give repeatable outputs when you need quick, reliable answers.
Find the sales volume needed to cover fixed and variable costs so pricing and production targets are grounded in cost structure.
If your workflow expands, pair this calculator with Gross Margin Calculator and Project Profitability Calculator to cross-check assumptions and build a stronger analysis chain.
Formula
Break-Even Units = Fixed Costs / (Price per Unit - Variable Cost per Unit)
Example Calculation
The worked example below demonstrates how the input fields translate into the final output. Use it as a quick validation pass before entering your own numbers.
- fixedCosts: 40000
- pricePerUnit: 55
- variableCostPerUnit: 30
Explanation of Results
Result Interpretation
At a $25 contribution margin per unit, selling 1,600 units covers $40,000 of fixed costs with no profit or loss.
FAQ
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.
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