Break-Even Point Calculator
Calculate how many units you need to sell for your revenue to cover fixed and variable costs. The break-even calculator shows the required sales volume, break-even revenue and expected profit or loss based on your planned sales.
Enter fixed costs for one period and variable costs per unit.
Break-even point
Enter the costs and selling price to see the result instantly.
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- Revenue at break-even
- Contribution per unit
Planned sales
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- Revenue
- Total costs
Costs and revenue
What is the break-even point?
The break-even point is the sales volume at which total revenue equals total costs. Below the break-even point, the business operates at a loss; above it, the business generates a profit.
A break-even calculation helps determine how many units of a product or service must be sold to cover both fixed and variable costs. It can be useful when planning sales, setting prices and evaluating whether a sales target is sufficient.
How is the break-even point calculated?
To calculate the break-even point, you need your fixed costs for a selected period, the selling price per unit and the variable cost per unit.
The difference between the selling price and the variable cost shows how much each sale contributes toward covering fixed costs. Once the fixed costs have been covered, additional sales under the same conditions generate profit.
Break-even point = fixed costs ÷ (selling price per unit − variable cost per unit)
If the calculation gives a result such as 16.7 units, at least 17 units must be sold. The calculator therefore rounds the required number of units up.
What are fixed and variable costs?
Fixed costs do not directly change with the number of units sold. Examples include rent, accounting, software subscriptions, insurance and other recurring expenses. Enter fixed costs for the same period, such as one month or one year.
Variable costs arise with each unit sold. They may include the purchase cost of a product, materials, packaging, production costs or a fee associated with an individual sale. If you have no variable costs, enter 0 or leave the field empty.
Break-even calculation example
A business has fixed costs of 50,000 per month. It sells a product for 1,500 per unit, while the variable cost is 500 per unit. Each sale therefore contributes 1,000 toward covering fixed costs.
50,000 ÷ (1,500 − 500) = 50 units
The break-even point is 50 units. At 50 sales, total revenue equals total costs. With the same prices and costs, each additional unit sold increases profit by 1,000.
Frequently asked questions
What if the variable cost is zero?
If an individual sale does not create any variable costs, enter 0 or leave the field empty. The break-even point will then be calculated from fixed costs and the selling price.
Why is the number of units rounded up?
A fraction of a product usually cannot be sold. If the mathematical break-even point is 16.7 units, at least 17 units must be sold to cover all costs. The chart may show the exact mathematical value, while the main result shows the minimum whole number of units.
What if the selling price is lower than the variable cost?
If the selling price is equal to or lower than the variable cost per unit, each additional sale does not contribute toward covering fixed costs. Under these conditions, the break-even point cannot be reached.
How can I lower my break-even point?
You can lower the break-even point by reducing fixed or variable costs or by increasing the selling price. A larger difference between the selling price and variable cost means that each sale covers a greater share of fixed costs.