Break-Even Calculator

Find your break-even point — the number of units you need to sell to cover all costs. Essential for business planning and pricing strategy.

Break-Even Formula

Break-Even Units = Fixed Costs / (Selling Price − Variable Cost)

The denominator is the contribution margin — the amount each unit sale contributes toward covering fixed costs and then generating profit.

Key Terms

• Fixed Costs — costs that don’t change with volume (rent, salaries, equipment)
• Variable Costs — costs that scale with each unit sold (materials, shipping, commissions)
• Contribution Margin — revenue minus variable costs per unit