Break-even Calculator
Estimate break-even units, break-even revenue, and contribution margin.
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Your result
Contribution margin per unit
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Contribution margin ratio
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Break-even units
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Break-even revenue
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Enter your assumptions to see a short result summary.
Break-even chart
Compare estimated total revenue with total cost around the calculated break-even point.
Revenue
Total cost
| Sales Level | Units | Revenue | Total Cost | Profit / Loss |
|---|
How it works
- Contribution margin per unit equals selling price minus variable cost per unit.
- Break-even units estimate how many units must be sold for total contribution margin to cover fixed costs.
- Break-even revenue is the revenue generated at the calculated break-even sales volume.
Contribution Margin per Unit = Selling Price − Variable Cost per Unit
Break-even Units = Fixed Costs / Contribution Margin per Unit
Frequently asked questions
What does break-even mean?
Break-even is the sales level at which estimated total revenue equals estimated total cost, producing approximately zero profit or loss.
Why must selling price be higher than variable cost?
If variable cost equals or exceeds selling price, each additional unit does not generate positive contribution toward fixed costs.
Are taxes included?
No. This simplified calculator uses fixed costs, selling price, and variable cost per unit only.
Disclaimer
This calculator provides simplified estimates for informational and planning purposes only. Actual business costs, pricing, taxes, capacity constraints, discounts, product mix, and accounting treatment may vary.