Break-Even Point Calculator
Calculate break-even sales units and revenue from fixed costs, selling price and variable cost per unit, then estimate the units required for a profit goal.
Find the sale that finally covers the costs.
Calculate break-even units and revenue from fixed costs, price and the variable cost of each sale.
Method: Contribution per unit = price − variable cost. Break-even units = fixed costs ÷ contribution per unit. Whole units are rounded up.
Your entries are calculated on this device and are not intentionally saved by LifeWidget.
A clear answer, with the method included.
How to use this break-even point calculator
- Enter the requested information in the fields above.
- Check that the values match your situation.
- Read the result, then copy it if you need it elsewhere.
The formula
Contribution per unit = selling price − variable cost. Break-even units = fixed costs ÷ contribution per unit. Break-even revenue = fixed costs ÷ contribution margin.
Example
With $5,000 in fixed costs, a $75 selling price and $30 variable cost, each sale contributes $45 and at least 112 whole units are required to cover the fixed costs.
Good to know.
What counts as a fixed cost?
A fixed cost does not normally change with each unit sold during the period, such as rent, basic software subscriptions or salaried administration.
What counts as a variable cost?
A variable cost increases with each sale, such as materials, packaging, transaction fees, shipping subsidies or delivery labor.
Why are break-even units rounded up?
A business usually cannot sell part of a unit. Rounding down would leave some fixed cost uncovered.
What if variable cost is higher than selling price?
Each sale would lose money before fixed costs, so no positive number of sales can reach break-even until price rises or variable cost falls.