Break-Even Calculator
Calculate the units needed to cover fixed and variable costs.
Results are estimates and may differ from actual tax, payroll, accounting or investment outcomes.
Break-even calculator
Estimate the sales volume or revenue needed to cover fixed and variable costs. Use the result for pricing and planning scenarios.
How it works
Frequently asked questions
What is break-even point?
It is the level of sales where total revenue equals total costs, resulting in neither profit nor loss.
What inputs are needed?
Typical inputs include fixed costs, variable cost per unit and selling price per unit.
Can break-even analysis predict profit?
It can show the sales level required to reach zero profit, but actual results depend on assumptions and changing costs or prices.
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What break-even means
Break-even is the sales level at which total revenue equals total costs. At that point there is neither a profit nor a loss. This calculator can help estimate the number of units or the sales value required to cover fixed costs when you know your selling price and variable cost per unit.
A common unit formula is fixed costs divided by the contribution margin per unit. The contribution margin is the selling price minus the variable cost for one unit. If fixed costs increase, the break-even point generally rises; if the contribution margin increases, fewer units are needed to cover fixed costs.
Example
If fixed costs are $10,000, the selling price is $50 and variable cost is $30, the contribution margin is $20 per unit. The break-even quantity is therefore 500 units. Sales above that level can contribute toward profit under the same assumptions.
Limitations
Real businesses may have multiple products, changing prices, step costs, taxes and capacity limits. Use the result as a planning estimate and revisit it when costs or pricing change.