Break-Even Calculator

How the Break-Even Calculator Works

This calculator determines the number of units you must sell to cover all your costs. The break-even point is where total revenue equals total expenses — meaning zero profit and zero loss. It’s one of the most important tools for pricing, budgeting, and planning.

Formulas Used

The calculator uses standard break-even analysis formulas:

• Break-Even Units:
  Fixed Costs ÷ (Selling Price − Variable Cost)
• Break-Even Revenue:
  Break-Even Units × Selling Price
• Contribution Margin:
  Selling Price − Variable Cost
• Contribution Margin Ratio:
  (Contribution Margin ÷ Selling Price) × 100

Example

Example for fixed costs = $10,000, variable cost = $20, price = $50:

Contribution Margin = 50 − 20 = 30
Break-Even Units = 10000 ÷ 30 = 333.33 units
Break-Even Revenue = 333.33 × 50 = $16,666.50