Try an example
Rent, salaries, software — per period.
What each sale costs you — materials, shipping, fees.
    Break-even volume 500

    units per period covers all your costs. Sell more and you're profitable.

    $10,000 Fixed costs divided by $20.00 Kept per unit equals 500 Units to break even

    If those are monthly costs, that's about 115 units a week. Every extra $1,000 of fixed cost adds 50 units to the target.

    Sales needed $25,000.00
    Profit per extra unit $20.00

    If something changed

    • Price up 10% to $55.00 400 units
    • Unit cost down 10% to $27.00 435 units

    Break-even chart

    Revenue vs. total costs
    The lines cross at 500 units. Everything to the left of that is a loss; everything to the right is profit at $20.00 a unit.

    Break-even analysis

    • You need 500 units — about $25,000 in sales — before this period turns a profit.
    • Each sale keeps $20.00 after the cost of making it, which is 40.0% of the price.
    • Break-even moves when your price or unit cost changes, not when volume does — charging $5.00 more per unit would bring it down to 400 units.

    Break-even formula

    Formula and worked example

    Your contribution margin is what's left from each sale after the variable cost of producing it. That margin is what pays down fixed costs.

    contribution margin = price − variable cost per unit break-even units = fixed costs ÷ contribution margin

    Break-even revenue is measured at that exact point — equivalently, fixed costs divided by the contribution margin ratio. The unit count shown is rounded up to a whole unit, so multiplying it by your price can land slightly above the revenue figure.

    Worked example

    Fixed costs (per month)
    $10,000
    Price per unit
    $50
    Variable cost per unit
    $30
    Contribution margin
    $50 − $30 = $20
    Break-even
    500 units · $25,000

    Break-even FAQ

    What is the break-even point?

    The break-even point is the sales volume at which your total revenue exactly equals your total costs — fixed costs plus variable costs. Below it you're operating at a loss; above it, every additional unit contributes to profit.

    What counts as a fixed cost vs. a variable cost?

    Fixed costs don't change with how much you sell — rent, salaries, insurance, software subscriptions. Variable costs scale with each unit sold — materials, per-unit shipping, payment processing fees, sales commissions.

    Why does the calculator reject some inputs?

    If your variable cost per unit is equal to or greater than your selling price, you lose money (or break even) on every single sale. No sales volume can ever cover your fixed costs in that case, so the calculator flags it instead of showing a meaningless answer.

    Why doesn't the break-even revenue equal my unit count times the price?

    The unit count is rounded up to a whole unit, because you can't sell a fraction of one. Break-even revenue is calculated at the exact break-even point (fixed costs divided by the contribution margin ratio), so it can be slightly lower than rounded-up units multiplied by price.

    Does this calculator store the numbers I enter?

    No. Everything runs in your browser. Your costs and prices are never sent to a server or included in analytics.

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