Break Even Calculator
Find how many units you need to sell to cover fixed costs — from price, variable cost, and fixed expenses. Click any i for detail.
Your numbers
Fixed costs ($)
i
Fixed costs
Costs that stay roughly the same regardless of units sold this period — rent, salaried payroll, software, insurance. |
|
|---|---|
Price per unit ($)
i
Price per unit
What a customer pays for one unit (or one average order if you treat orders as units). |
|
Variable cost per unit ($)
i
Variable cost
Cost that scales with each unit — materials, payment fees, shipping, unit commissions. |
How to use this calculator
- Enter fixed costs for the period you care about (month, quarter, year).
- Enter price per unit and variable cost per unit.
- Read break-even units and the implied revenue.
- If the result shows a dash, price is not above variable cost.
Results explained
The large number is break-even units. Below it, break-even revenue is units × price. Contribution margin is price − variable cost.
Quick reference: break-even formulas
Core relationships used in this calculator.
| Metric | Formula |
|---|---|
| Contribution margin | Price − variable cost |
| Break-even units | Fixed costs ÷ contribution margin |
| Break-even revenue | Break-even units × price |
If contribution margin ≤ 0, you cannot break even by selling more at that price.
How the estimate is built
Contribution margin = price − variable cost. Break-even units = fixed costs ÷ contribution margin. Break-even revenue = units × price.
Example scenario
With $10,000 fixed costs, $50 price, and $20 variable cost, contribution is $30 and break-even is 333.3 units (~$16,667 revenue).
FAQ
What counts as a unit?
A product, a service hour, or an average order — pick one definition and stay consistent.
Multiple products?
Use a blended average price and variable cost, or run the calculator once per product line.
Is this the same as payback?
No. Payback times capital investment; break-even asks when contribution covers fixed costs.