Break-Even Point Calculator
Enter your fixed costs, price per unit, and variable cost per unit to find the exact number of units — and revenue — needed to break even before you start turning a profit.
How the Break-Even Point formula works
Break-even point in units:
Contribution margin = Price per unit − Variable cost per unit Break-even units = Fixed costs / Contribution margin Break-even revenue = Break-even units × Price per unit
Step-by-step calculation
- Subtract the variable cost per unit from the price per unit to find the contribution margin.
- Divide total fixed costs by the contribution margin to find the break-even unit count.
- Multiply the break-even unit count by the price per unit to find break-even revenue.
Worked example
Fixed costs of $10,000/month, selling at $50/unit with a variable cost of $30/unit: Contribution margin = $50 − $30 = $20. Break-even units = 10,000 / 20 = 500 units. Break-even revenue = 500 × $50 = $25,000.
Frequently asked questions
What counts as a fixed cost versus a variable cost?
Fixed costs stay the same regardless of sales volume, like rent or salaried wages. Variable costs scale with each unit sold, like raw materials or per-unit shipping. Getting this split right is essential for an accurate break-even point.
What happens after I pass the break-even point?
Every unit sold beyond break-even contributes its full contribution margin directly to profit, since fixed costs are already covered — which is why break-even analysis is often paired with profit-target planning.
Does break-even analysis account for taxes?
No — this is a pre-tax operational break-even point based on covering costs, not a target for after-tax net income. Tax planning is a separate calculation layered on top.