Break-Even Calculator
Work out the break-even point for a product or business: the number of sales needed to cover fixed costs, and to reach a target profit.
Result
Enter your costs and price.
How to use this calculator
- Enter your fixed costs for the period (rent, salaries, software…).
- Enter the selling price and variable cost per unit.
- Optionally add a profit target.
Formula
Contribution margin = price − variable cost. Break-even units = (fixed costs + target profit) ÷ contribution margin, rounded up. Break-even sales = (fixed costs + target profit) ÷ (margin ÷ price).
Worked example
A product at 50
Fixed costs of 10,000, price 50 and variable cost 30 give a margin of 20, so you break even at 500 units (25,000 in sales). A 2,000 profit target needs 600 units.
Assumptions and limitations
- Everything runs in your browser; nothing you enter is uploaded or stored.
- Prices and costs per unit are assumed constant at every volume.
Frequently asked questions
What are fixed and variable costs?
Fixed costs stay the same whatever you sell (rent, insurance). Variable costs rise with each unit (materials, shipping, payment fees).
How can I lower my break-even point?
Raise prices, cut variable costs per unit, or reduce fixed costs. Each extra unit of margin reduces the units you need.