Find the number of units and the sales revenue you need to cover fixed and variable costs.
Please do not make financial decisions based on these results.
What is the Break-even Calculator?
Find the number of units and the sales revenue you need to cover fixed and variable costs. To use the Break-even Calculator, enter fixed costs, selling price per unit, variable cost per unit, target profit; it returns break-even units, break-even revenue, contribution margin per unit, contribution margin ratio and more, and shows them instantly as you type.
Where the Break-even Calculator fits
Find the number of units and the sales revenue you need to cover fixed and variable costs. The main figure it returns is the Break-even units, worked out from the values you enter.
It belongs with the other business planning tools. If you are comparing options or checking a result from another angle, try the Average Fixed Cost Calculator, Price / Quantity Calculator or the High-Low Method Calculator.
How to use the Break-even Calculator
- Enter your numbers. Start with Fixed costs ($), Selling price per unit ($), Variable cost per unit ($), then fill in Target profit ($). Use figures from the same period (same month, quarter or year) for every field. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Break-even units, and the cards below show Break-even revenue, Contribution margin per unit, Contribution margin ratio. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Break-even Calculator using the default values shown in the calculator above:
Inputs
| Fixed costs ($) | 12,000 |
|---|---|
| Selling price per unit ($) | 45 |
| Variable cost per unit ($) | 20 |
| Target profit ($) | 5,000 |
Results
| Break-even units | 480 |
|---|---|
| Break-even revenue | $21,600.00 |
| Contribution margin per unit | $25.00 |
| Contribution margin ratio | 55.56% |
| Units for target profit | 680 |
With these inputs the calculator returns Break-even units: 480. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Fixed costs ($) from 12,000 to 14,400 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Break-even units | 480 | 576 | +20% |
| Break-even revenue | $21,600.00 | $25,920.00 | +20% |
| Contribution margin per unit | $25.00 | $25.00 | 0% |
| Contribution margin ratio | 55.56% | 55.56% | 0% |
| Units for target profit | 680 | 776 | +14.1% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the Break-even Calculator reports Break-even units, break-even revenue, contribution margin per unit, contribution margin ratio and units for target profit. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
What does break-even mean?
It is the sales volume at which total revenue equals total cost, so profit is exactly zero.
Are the results forecasts?
No. They apply the formula shown to the numbers you enter, so the output is only as realistic as your assumptions.
What is the most important number for a new business?
Cash runway. A profitable plan still fails if cash runs out first, so check burn rate and break-even together.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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