Find how many units you must sell before you start making a profit, given fixed and per-unit costs.
How the Break-Even Calculator works
Break-even units = fixed costs ÷ (price − variable cost per unit). The denominator is the contribution margin per unit.
Example calculation
$10,000 fixed costs, $40 price, $15 variable cost: break-even is 400 units, or $16,000 in revenue.
Tips for using the Break-Even Calculator
- Raising price or cutting variable cost lowers the break-even point.
- If price ≤ variable cost you can never break even.
- Use it to test new products before launch.
Break-Even Calculator — frequently asked questions
- What is contribution margin?
- Price minus variable cost per unit — the amount each sale contributes to covering fixed costs.
- Price below variable cost?
- You can never break even — every sale loses money; raise price or cut variable cost.
- What is contribution margin?
- Price minus variable cost per unit — what each sale contributes to fixed costs.
- How do I lower break-even?
- Increase price, reduce variable cost, or cut fixed costs.
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