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Break-Even Calculator

Calculate your break-even point in units and revenue using fixed costs, price per unit, and variable cost per unit. Related: Profit MarginMarkup

Costs that don’t change with volume (rent, software, insurance).
Your selling price per unit.
Cost per unit that scales with volume (materials, shipping, fees).
If your price ≤ variable cost, you cannot break even. Increase price or reduce variable costs to create contribution margin.

Results

Contribution Margin (per unit)
Break-Even Units
Break-Even Revenue
Contribution Margin %

Break-Even Point Explained

Your break-even point is where total revenue equals total costs. At break-even, profit is zero. After that point, each additional unit sold contributes to profit.

Break-Even Formula

Break-even units = Fixed Costs ÷ (Price per Unit − Variable Cost per Unit)
Break-even revenue = Break-even units × Price per Unit

Why Break-Even Matters