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Break Even Calculator

This break even calculator finds units and revenue to cover fixed costs from the price and variable cost per unit, with an optional profit target.

Rent, salaried payroll, insurance, and other costs that stay the same for the period.

Use the same period and currency as the fixed costs.

Materials, packaging, and other costs that rise with each unit.

Leave blank for break-even. Units = (fixed costs + profit) ÷ contribution margin.

Break-even result

Contribution margin
$20.00 / unit
Break-even units
500
Break-even revenue
$25,000.00

500 units, or $25,000.00 in revenue, cover the fixed costs at a $20.00 contribution margin per unit.

Arithmetic estimate for one product. It is not accounting or tax advice, and it does not model mixed costs.

How to use

  1. Enter fixed costs for one period, such as a month or a year.
  2. Enter the selling price per unit and the variable cost per unit in the same currency.
  3. Leave the profit target blank for break-even, or enter a profit to see the higher unit count.

Formula

Contribution margin = price per unit − variable cost per unit. Break-even units = fixed costs ÷ contribution margin. Units for a profit target = (fixed costs + target profit) ÷ contribution margin. Revenue is units × price. The contribution margin must be positive.

Example. Fixed costs of $10,000, a $50 price, and a $30 variable cost give a $20 contribution margin. Break-even is 500 units and $25,000 in revenue. A $2,000 profit target needs 600 units and $30,000 in revenue.

Frequently asked questions

What is the break-even formula?

Break-even units = fixed costs / (price per unit − variable cost per unit). That contribution margin must be positive.

What counts as a fixed cost?

Costs that do not change with each extra unit in the short run: rent, salaried payroll, insurance. Enter a monthly or annual total consistently.

What is contribution margin?

Price minus variable cost per unit. It is the amount each sale contributes toward fixed costs and profit.

Can I set a profit target?

Yes. Units for a target profit = (fixed costs + target profit) / contribution margin.

What if the price is not above the variable cost?

There is no break-even. Each sale would fail to cover its own variable cost, so the contribution margin must be positive.

Is this tax or accounting advice?

No. It is a simple unit break-even estimate, not a business plan. Real businesses have mixed costs and taxes.

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