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
Break-Even Units = Fixed Costs / (Price per Unit - Variable Cost per Unit)
Worked Example
fixedCosts40000
pricePerUnit55
variableCostPerUnit30
Result: 1,600 unitsAt 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.