Break-Even Point Calculator

Find how many units you must sell to cover your costs — the point where profit starts.

Quick answer

A break-even calculator finds how many units you must sell to cover fixed and variable costs. With $10,000 of fixed costs, a $50 price and $30 variable cost per unit, you break even at 500 units, or $25,000 of sales. Every unit after that adds $20 profit.

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$
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Break-even units
1,000
Break-even revenue
$50,000
Contribution per unit
$20.00
Contribution margin
40.00%
Each sale at $50.00 leaves $20.00 after variable costs to cover your $20,000 of fixed costs. You need to sell 1,000 units (about $50,000 in sales) to break even; every unit after that is profit.

Key takeaways

  • Contribution per unit = price − variable cost.
  • Break-even units = fixed costs ÷ contribution.
  • Raising price or cutting unit costs lowers the break-even point.
Contribution margin — The amount each unit sold contributes to fixed costs and profit after variable costs.

How the break-even calculator works

Each unit sold contributes (price − variable cost) toward fixed costs like rent and salaries. Once those contributions add up to your fixed costs, you break even.

Formula

Break-even units = fixed costs ÷ (price − variable cost) Break-even revenue = units × price

Standard formula. Further reading: Investopedia – Break-even analysis · U.S. SBA – Calculate your startup costs

Worked example

Fixed costs $10,000, price $50, variable cost $30: 10,000 ÷ 20 = 500 units, or $25,000 of sales.

Change any number above and the plain-English explanation updates instantly with your own figures.

Frequently asked questions

What are fixed costs?

Costs that don't change with sales volume: rent, salaries, software, insurance.

What are variable costs?

Costs per unit sold: materials, packaging, shipping, payment fees.

What is contribution margin?

Price minus variable cost per unit — the amount each sale contributes to fixed costs and profit.

How do I lower my break-even point?

Raise prices, reduce variable costs, or cut fixed costs.

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Results are estimates for educational purposes and are not financial advice.

Written and reviewed by Muhammad Asif, founder of CalcPane · Formulas verified by automated tests · Updated