BREAK-EVEN
Break-Even Calculator
Estimate the number of units and the revenue you need to cover fixed and variable costs. A simplified planning tool that runs entirely in your browser.
Units & revenueStep-by-stepNo accountSimplified estimate
Break-even units
500
- Contribution margin / unit
- $20
- Contribution margin ratio
- 40%
- Break-even revenue
- $25,000
- Break-even units
- 500
You need to sell 500 units to cover $10,000 in fixed costs at $50 per unit with $30 in variable cost per unit.
This calculator provides a simplified estimate. Actual business costs, taxes, capacity, demand, and pricing conditions can affect break-even results.
How this is calculated
- 1.Selling price per unit: $50
- 2.Variable cost per unit: $30
- 3.Contribution margin per unit (price − variable): $20
- 4.Fixed costs: $10,000
- 5.Break-even units (fixed ÷ contribution, rounded up): 500
- 6.Break-even revenue (units × price): $25,000
Formula
- Contribution margin per unit
- CM = Selling Price Per Unit − Variable Cost Per Unit
- Contribution margin ratio
- CM Ratio = CM ÷ Selling Price Per Unit
- Break-even units
- BE Units = Fixed Costs ÷ CM
- Break-even revenue
- BE Revenue = BE Units × Selling Price Per Unit
- Break-even units are rounded up to the next whole unit.
- If contribution margin is zero or negative, break-even is undefined.
- This is a simplified estimate; real costs, taxes, capacity, and demand affect results.
How to use this calculator
Enter your total fixed costs (costs that do not change with volume, like rent and salaries), the selling price per unit, and the variable cost per unit (costs that scale with each unit produced, like materials and fulfillment). The calculator returns the contribution margin per unit, the contribution margin ratio, the number of units needed to break even, and the revenue that represents.
Limitations of break-even analysis
Break-even assumes a constant selling price and variable cost per unit and ignores capacity limits, demand, taxes, and mixed cost structures. Use it as a quick planning estimate, not as a forecast. For real decisions, model multiple scenarios and consult a qualified professional.
Frequently asked questions
What is break-even?
Break-even is the point where total revenue equals total costs. Below it you make a loss; above it you make a profit. This calculator estimates the number of units and the revenue required to reach that point.
What is contribution margin?
Contribution margin per unit is selling price per unit minus variable cost per unit. It is the amount each unit contributes toward covering fixed costs. The contribution margin ratio is that amount divided by the selling price.
Why does the calculator say break-even is invalid?
If the selling price is less than or equal to the variable cost per unit, the contribution margin is zero or negative. In that case, each unit sold never covers (or increases) fixed costs, so break-even cannot be reached.
Are break-even units rounded?
Yes. The calculator rounds the break-even unit count up to the next whole unit, because you cannot sell a fractional unit to break even.
Is this business advice?
No. This is a simplified estimate and is not accounting, tax, financial, legal, or business advice. Actual costs, taxes, capacity, demand, and pricing conditions can change the result.
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No account. No ads. No tracking. Your calculation inputs stay in your browser and are not sent to WebF1 or stored on a server.
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WebF1 LLC builds custom business systems, integrations, and practical software tools. This break-even calculator is a free, private utility and is not accounting, tax, financial, legal, or business advice.
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