Break-Even Calculator
Find out how many units you need to sell - and how much revenue that represents - before your business starts turning a profit.
Total, not per unit
Break-even units
334
Break-even revenue
$16,666.67
What Your Result Means
Break-even units is the number of units you must sell to cover all your fixed and variable costs exactly - beyond that, each additional sale contributes to profit. Break-even revenue converts that unit count into a dollar sales target.
How It Is Calculated
Break-Even Units = Fixed Costs / (Selling Price - Variable Cost per Unit)
The denominator here is called the contribution margin per unit - what's left from each sale after variable costs, to go toward fixed costs and profit.
Worked Example
With $10,000 in fixed costs, a $20 variable cost per unit, and a $50 selling price, your contribution margin is $30 per unit. Break-even units = $10,000 / $30 = 334 units (rounded up), or $16,700 in revenue.
Important Assumptions
- Assumes fixed costs and variable cost per unit stay constant regardless of volume.
- Break-even units are rounded up, since you can't sell a partial unit.
Frequently Asked Questions
- What counts as a fixed cost?
- Fixed costs don't change with sales volume - things like rent, salaries, and insurance. Variable costs scale with each unit sold, like materials or shipping.
- What if my selling price is lower than my variable cost?
- Break-even is impossible in that case - you lose money on every unit sold, regardless of volume. You'll need to raise your price or lower variable costs.
Related Calculators
Methodology
This calculator uses the standard contribution margin break-even formula used in business accounting. See our methodology page for details.
Results depend entirely on the assumptions and figures you enter. Actual business performance may differ. This calculator does not provide accounting, tax, or legal advice.