Free break-even calculator
A break-even calculator finds the point where total revenue equals total costs, so every sale after that is profit. Break-even units = fixed costs ÷ (price per unit − variable cost per unit). Enter your costs and price below to see your break-even point in units and revenue, plus your contribution margin.
Break-even units = fixed costs ÷ contribution margin per unit, where contribution margin per unit = price − variable cost. Example: $10,000 fixed costs, $50 price, $30 variable cost. Contribution margin = $20, so break-even = 10,000 ÷ 20 = 500 units, or $25,000 in revenue.
Enter one product, service, or blended average unit. Your numbers never leave your browser.
The chart shows where revenue crosses total cost. That crossing point is your break-even point.
Download the Excel and Google Sheets version so you can keep the break-even point calculator, pricing scenarios, contribution margin, and revenue vs cost chart.
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Contribution margin is what each sale contributes toward fixed costs after variable costs: price − variable cost per unit, or as a ratio, that figure ÷ price. A higher contribution margin means you break even on fewer sales.
Units tell you how many you must sell; dollars tell you the revenue you must hit. Break-even revenue = break-even units × price, or fixed costs ÷ contribution margin ratio. Use dollars for services and mixed product lines where "units" are fuzzy.
For products, variable cost is usually materials and shipping. For services, it is the direct labor and delivery cost of one engagement. The formula is identical; only what counts as variable cost changes.
To find the volume for a target profit, add it to fixed costs: units = (fixed costs + target profit) ÷ contribution margin per unit. The calculator does this when you enter a target profit.
Your margin of safety is how far sales sit above break-even: (actual sales − break-even sales) ÷ actual sales. A larger margin of safety means more cushion before you dip into a loss.
You can express break-even in time, not just units. If you sell a steady volume per month, break-even time = break-even units ÷ units sold per month. Selling 500 break-even units at 100 a month means you break even in about 5 months.
Break-even is the sales volume where revenue covers costs, an ongoing-operations question. Payback period is how long until an upfront investment is recovered from its cash flows, an investment-evaluation question. They answer different things; do not use one in place of the other.
The basic formula assumes fixed and per-unit costs stay constant. In practice, fixed costs step up as you scale (a second shift, more space) and variable cost per unit can fall with bulk discounts. Re-run the calculator at each cost step to see how break-even shifts across volume ranges.
Break-even analysis ignores the time value of money and assumes price and costs are stable. Use it as a planning baseline, not a guarantee, and pair it with a cash-flow view for big decisions.
Break-even units = fixed costs ÷ (price per unit minus variable cost per unit). Break-even revenue = break-even units times price.
It is the price of a unit minus its variable cost: the amount each sale contributes toward covering fixed costs.
Use units when you sell a single clear product; use dollars (revenue) for services or a mix of products.
Cut fixed costs, raise your price, or reduce variable cost per unit. Each one raises contribution margin and lowers the units you must sell.
Use a weighted-average contribution margin across your product mix, then divide fixed costs by that figure for a blended break-even in revenue.
There is no universal number, but a higher margin of safety means more buffer; many small businesses aim to operate well above break-even to absorb slow periods.
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