Break-Even Calculator
Enter your fixed costs, variable cost per unit, and selling price to find your break-even point. Includes a chart showing where revenue crosses total costs.
This calculator provides estimates for illustrative purposes only and does not constitute financial advice.
How it works
The break-even point is the number of units you must sell for total revenue to equal total costs. The formula is straightforward: divide your fixed costs by the contribution margin per unit (selling price minus variable cost per unit). At this exact quantity, your business neither makes a profit nor incurs a loss — every unit sold beyond it contributes directly to profit.
Fixed costs are expenses that stay the same regardless of how many units you sell, such as rent, salaries, and insurance. Variable costs change with each unit produced, including materials, packaging, and shipping. Understanding the split between fixed and variable costs is essential for pricing decisions, budgeting, and evaluating whether a new product or venture is financially viable.
The chart plots total revenue and total costs against the number of units sold. The point where the two lines intersect is your break-even point. Above that intersection, the gap between revenue and cost represents your profit; below it, the gap represents your loss. All calculations run locally in your browser.