Break-Even Calculator
Enter fixed costs, the price per unit and the variable cost per unit to find the sales and the number of units at which profit is exactly 0. You can also start from total sales and total variable cost.
What the break-even point is
The break-even point is where total revenue equals total cost, so the profit is exactly 0. Selling more than this makes a profit; selling less makes a loss.
- Contribution margin per unit = price − variable cost. It is the amount each unit contributes toward covering the fixed costs.
- Break-even quantity = fixed costs ÷ contribution margin per unit.
- Break-even sales = fixed costs ÷ contribution margin ratio, where the contribution margin ratio is the contribution margin divided by the price (or by the sales).
When you start from total sales and total variable costs, the contribution margin ratio is (sales − variable costs) ÷ sales, and the break-even sales are the fixed costs divided by that ratio.
Example
Fixed costs of 30,000.00, a price of 25.00 per unit and a variable cost of 10.00 per unit:
- Contribution margin per unit = 25.00 − 10.00 = 15.00 (a ratio of 60.00%)
- Break-even quantity = 30,000.00 ÷ 15.00 = 2,000 units
- Break-even sales = 2,000 × 25.00 = 50,000.00
From total figures: sales of 1,000,000.00, variable costs of 400,000.00 and fixed costs of 300,000.00 give a contribution margin of 600,000.00 (60.00%), so the break-even sales are 300,000.00 ÷ 0.6 = 500,000.00.
When the numbers do not divide evenly, the quantity is rounded up to a whole unit and the sales are rounded up to the smallest unit of the currency, so that the profit is never below 0. For a price of 19.99, a variable cost of 7.50 and fixed costs of 10,000.00, the break-even quantity is 801 units (800.64 rounded up).
When there is no break-even point
If the price per unit is not higher than the variable cost per unit (or the sales are not higher than the variable costs), each sale adds nothing toward the fixed costs, and the loss grows with every sale. The calculator then says that there is no break-even point. If the sales are 0, the ratio cannot be calculated.
Things to know
- Enter amounts of 0 or more, up to 9,999,999,999.99, with up to 2 decimal places. The amounts have no currency. The quantity is shown as a whole number.
- This is the simple model: the price and the variable cost per unit are assumed to stay constant, and there is a single product. Several products, step costs and taxes are not covered.
- The result is a guide. Check your books for figures used in accounting or tax filings.
- To see how fast an investment pays back, use the ROI and Payback Period Calculator. For the percentage margin of a sale, use the Profit Margin Calculator.
Source
The formulas follow Wikipedia, "Break-even point": https://en.wikipedia.org/wiki/Break-even_point (read on November 1, 2026): the point where total cost and total revenue are equal; number of units = total fixed costs ÷ unit contribution; break-even in sales = fixed costs ÷ (contribution ÷ price). It is an explanatory article, not a standard. The examples above are worked out here from the formulas.
Frequently asked questions
What is the break-even point formula?
Fixed costs ÷ (price per unit − variable cost per unit) gives the number of units. Multiply by the price per unit for the sales.
What are fixed costs and variable costs?
Fixed costs do not change with the number of units sold (rent, salaries). Variable costs grow with each unit (materials, packaging).
What happens if I lower the price?
The contribution margin per unit falls, so the break-even quantity rises. If the price falls to the variable cost, there is no break-even point.
What is the contribution margin ratio?
The contribution margin divided by the price (or the sales), as a percentage. A higher ratio means each sale does more to cover the fixed costs.