Break-Even Calculator
Calculate how many units you need to sell to cover your costs.
Break-Even Results
What Is a Break-Even Point?
The break-even point is the level of sales where total revenue equals total costs. At this point, a business has neither a profit nor a loss.
The Break-Even Calculator helps businesses, entrepreneurs, sellers, and students determine how many units must be sold before a business begins generating profit.
Break-Even Formula
Example
Suppose your fixed costs are $5,000, your variable cost per unit is $20, and your selling price is $50.
Contribution per unit = $50 − $20 = $30
Break-even units = $5,000 ÷ $30 = 166.67 units
Therefore, you need to sell approximately 167 units to cover your costs.
Frequently Asked Questions
What does break-even mean?
Break-even means that total revenue is equal to total costs, resulting in neither profit nor loss.
What happens if the selling price equals the variable cost?
There is no contribution margin available to cover fixed costs, so a normal break-even point cannot be calculated.
Can I use this calculator for a small business?
Yes. It can be used for products, services, retail sales, manufacturing, and other business situations where fixed and variable costs are known.