Break-Even Calculator
Find out how many units you need to sell — and what revenue you need — to cover all your costs.
Break-Even Formula
Break-Even Revenue = Break-Even Units × Selling Price
The break-even point is where total revenue equals total costs — neither profit nor loss. Every unit sold above this point generates profit equal to the contribution margin.
What Are Fixed vs Variable Costs?
Fixed costs stay constant regardless of production volume — rent, insurance, salaries, equipment leases. Variable costs change with each unit produced — raw materials, packaging, direct labour per unit.
Contribution Margin
The contribution margin is the selling price minus variable cost per unit. It's the amount each unit “contributes” toward covering fixed costs. Once fixed costs are covered, the contribution margin becomes profit.
Common Questions
What if my selling price is below variable cost?
If price < variable cost, there is no break-even point — you lose money on every unit sold regardless of volume. This is called a negative contribution margin and means your pricing model is fundamentally broken.
How do I use break-even for pricing decisions?
Run the calculator with different price points to see how they change the break-even units. A higher price reduces the number of units you need to sell, but may reduce demand. Break-even analysis helps you find the floor below which a price makes the business unviable.