Break-Even Calculator
Know the sales target that covers your costs.
Break-Even Calculator
Estimate the unit sales and revenue needed to cover fixed costs.
Break-even target
1,000 units
At least $25000.00 in revenue at this selling price.
- Contribution per unit
- $10.00
- Contribution margin
- 40.0%
- Units above / below break-even
- 500
This simple model assumes one product, constant costs, and no taxes, discounts, or capacity limits.
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What This Calculator Does
The Break-Even Calculator estimates how many units you need to sell before revenue covers fixed and variable costs. It also shows the contribution margin and how far current unit sales are above or below the target.
How It Works
Contribution per unit is selling price minus variable cost per unit. Divide fixed costs by that contribution, then round up to a whole unit. Break-even revenue uses the rounded whole-unit target.
Example
With 10,000 in fixed costs, a 25 selling price, and 15 variable cost per unit, each sale contributes 10. You need 1,000 units and 25,000 in revenue to break even.
Formula
Selling price − Variable cost per unitCeiling(Fixed costs / Contribution per unit)Break-even units × Selling priceReading the Results
Break-Even Units
The minimum whole number of units that covers fixed costs at the entered contribution per unit.
Margin of Safety
Entered units sold minus the break-even unit target. A negative value means sales are below break-even.
Frequently Asked Questions
What is the break-even point?
It is the sales level where total revenue equals total costs, so the modeled profit is zero before taxes and financing.
Why are units rounded up?
A fraction of a product usually cannot be sold, so the target rounds up to the next whole unit to ensure costs are covered.
What if my variable cost equals the selling price?
There is no contribution left to pay fixed costs. The calculator reports that break-even cannot be reached under those inputs.
Does this include taxes or discounts?
No. This basic estimate assumes a constant selling price and costs and does not model tax, discounts, or capacity constraints.