Break-Even Calculator
Enter your fixed costs, price per unit and variable cost per unit to see how many units — and how much in sales — you need to cover your costs.
These results are estimates for reference only — not investment, tax or financial advice. They assume one product at a steady price and unit cost, and leave out taxes, discounts, mixed product lines and costs that shift with volume.
Every calculation runs in your browser — the figures you enter never leave your device.
FAQ
How is the break-even point calculated?
It divides your fixed costs by the contribution margin per unit — the price minus the variable cost of one unit. So fixed costs of 5,000 with a 50 price and 20 variable cost give a 30 margin, and 5,000 ÷ 30 ≈ 166.7 units, or about 8,333 in sales. Because you cannot sell part of a unit, round up to 167 to fully cover your costs.
What are contribution margin and margin ratio?
The contribution margin per unit is what each sale leaves after its own variable cost — 50 minus 20 is 30 — and that is what goes toward fixed costs. The margin ratio is that figure as a share of the price, 30 ÷ 50 = 60%. Divide fixed costs by the ratio to get the break-even point straight in sales value.
What if the price is at or below the variable cost?
Then each unit earns nothing toward fixed costs, or actually loses money, so no sales volume ever breaks even and the calculator says so instead of showing a number. The fix is on the pricing side — charge more per unit, or bring the variable cost below the price.
What does the calculation leave out?
It models a single product at one steady price and one variable cost per unit, and assumes fixed costs stay flat. It ignores taxes, volume discounts, a mix of products with different margins, and costs that rise in steps as you grow. Treat the result as a planning baseline for pricing, not a full financial forecast.