Break-Even Calculator
Find how many units and how much revenue you need each month to cover fixed and variable costs.
- Break-even revenue
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- Contribution per unit
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- Contribution margin
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What is the Break-Even Calculator?
The break-even calculator shows how many units you must sell each month, and the revenue that represents, before you start making a profit. Enter fixed costs, selling price and variable cost per unit to see the contribution each sale adds.
How it works
Contribution per unit equals the price minus the variable cost per unit. Break-even units equal monthly fixed costs divided by that contribution, rounded up to a whole unit. Break-even revenue is units times price. Contribution margin is contribution divided by price. If contribution is zero or negative, break-even is not reachable.
How to use it
- Enter monthly fixed costs such as rent and salaries.
- Enter the selling price per unit.
- Enter the variable cost per unit.
- Read the break-even units and revenue.
Break-Even Calculator — FAQ
What counts as a fixed cost?
Costs that stay the same however much you sell, such as rent, salaries and software subscriptions. Variable costs, like materials, change with each unit.
Why does it show zero?
If your price is not above your variable cost, each sale adds no contribution, so break-even cannot be reached at any volume.
Is break-even the same as profit?
No. It is the point where profit is zero. Every unit sold beyond it adds the contribution per unit to profit.