Break-Even Calculator
The Break-Even Calculator determines how many units you must sell to cover your fixed costs, based on your price per unit and variable cost per unit. It also converts your break-even unit count into break-even revenue, so you can see the minimum sales dollar figure your business needs to hit before turning a profit. Raising your price per unit or trimming your variable cost per unit both reduce the number of units required, since either move increases your contribution margin.
How This Tool Works
Enter your total fixed costs, the price you charge per unit, and your variable cost per unit to calculate your break-even point.
Formula & Method
Contribution margin per unit = price per unit − variable cost per unit. Break-even units = fixed costs ÷ contribution margin per unit.
Example Calculation
With $10,000 in fixed costs, a $50 price per unit, and $30 variable cost per unit, you need to sell 500 units to break even.
Frequently Asked Questions
What are fixed vs. variable costs?+
Fixed costs (rent, salaries, insurance) stay the same regardless of sales volume. Variable costs (materials, shipping, per-unit labor) scale directly with how much you sell.
What is contribution margin?+
Contribution margin is the amount each unit sold contributes toward covering fixed costs, calculated as price minus variable cost per unit.
What happens after I break even?+
Every unit sold beyond your break-even point contributes its full contribution margin directly to profit, since fixed costs are already covered.
What if my price per unit is lower than my variable cost per unit?+
The calculator will show an error, because a negative contribution margin means you lose money on every unit sold — no sales volume could ever cover your fixed costs in that situation. You'd need to raise your price or lower your variable cost before a break-even point exists.
Does this work if I sell multiple products at different prices?+
This calculator computes break-even for a single product line at one price and one variable cost. For a multi-product business, you'd typically calculate a weighted-average contribution margin across your sales mix, or run this calculation separately for each product line.
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<a href="https://everyfix.net/tools/break-even-calculator/">Break-Even Calculator</a> by <a href="https://everyfix.net">EveryFix</a>Related Tools
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