Break-Even Point Calculator
Calculate the break-even point in units and revenue from fixed costs, price per unit and variable cost per unit, with contribution margin.
Last reviewed by the Radiatus Cloud team
Find how many units you must sell to cover costs and start making a profit.
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Find your break-even point
The break-even point is the level of sales at which total revenue exactly covers total costs, so you make neither a profit nor a loss. This calculator finds it from three figures: your fixed costs, which stay the same regardless of how much you sell; the selling price of each unit; and the variable cost of producing each unit. The difference between price and variable cost is the contribution margin, the amount each sale contributes toward covering fixed costs. Break-even in units equals fixed costs divided by the contribution margin per unit, and break-even revenue is that figure multiplied by the price.
Any sales beyond the break-even point generate profit, while sales below it mean a loss.
Why break-even analysis matters
Knowing your break-even point is fundamental to pricing, budgeting and business planning. It tells you the minimum you must sell to be viable, helps you judge whether a new product or price is realistic, and shows how changes in costs or price shift the target. A lower break-even point means less risk, which is why reducing fixed costs or raising the contribution margin is so valuable.
The calculator rounds break-even units up, since you cannot sell a fraction of a unit to break even. All calculation happens locally in your browser.
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Frequently Asked Questions
What is the break-even formula?
Break-even units equal fixed costs divided by the contribution margin per unit, where the contribution margin is the selling price minus the variable cost per unit.
What is the contribution margin?
It is the amount each unit sold contributes toward fixed costs and profit, calculated as the selling price minus the variable cost per unit.
Why must price exceed variable cost?
If each unit costs more to make than it sells for, every sale loses money and you can never cover fixed costs, so there is no break-even point.
What happens above the break-even point?
Every unit sold beyond break-even adds its full contribution margin to profit, since fixed costs are already covered.
How can I lower my break-even point?
Reduce fixed costs, lower the variable cost per unit, or raise the selling price. Each increases the contribution margin or shrinks the costs to cover.
Privacy & Security
Everything runs in your browser; nothing is uploaded.
How to Use
Enter fixed costs, selling price and variable cost per unit.
Disclaimer: This tool is provided "as is" without warranty of any kind. Results are for educational and utility purposes.
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