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Business

Break-Even Calculator

The break-even point is the sales volume at which total revenue equals total costs — the moment a product or business stops losing money and starts turning a profit. Enter your fixed costs, price per unit, and variable cost per unit to find how many units you need to sell and the revenue that represents.

Contribution / unit
Break-even units
Break-even revenue

How to use the Break-Even Calculator

  1. 1Enter fixed costs. Costs that don't change with volume — rent, salaries, software, insurance.
  2. 2Enter price per unit. What you charge for one unit of the product or service.
  3. 3Enter variable cost per unit. The per-unit cost that scales with production — materials, shipping, fees.

Frequently asked questions

What is the break-even formula?

Break-even units = Fixed Costs ÷ (Price per Unit − Variable Cost per Unit). The denominator is your contribution margin per unit.

What is contribution margin?

It's the price per unit minus the variable cost per unit — the amount each sale contributes toward covering fixed costs. If it's zero or negative, you can't break even at that price.