Revenue Break-Even
Calculate the sales revenue needed to cover fixed costs.
About Revenue Break-Even
Revenue break-even divides fixed costs by the contribution margin ratio, giving the sales dollars needed before any profit appears. Service and subscription businesses often think in revenue rather than units, so this version of break-even fits how they set monthly targets.
Formula
Revenue Break-Even
Break-even revenue = fixed costs / contribution margin ratio
- contribution margin ratio
- Portion of each sales dollar left after variable costs
Worked example
With the default values below, Revenue Break-Even returns Contribution Margin Ratio of 35.00%. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Fixed costsminimum 0
- 40,000
- Contribution marginaccepts 0–100 %
- 35 %
- Average unit priceminimum 0
- 50
Results
- Contribution Margin Ratio
- 35.00%
- Break-Even Revenue
- $114,285.71
- Break-Even Units
- 2,286
Step by step
- 1Values used
- 2Revenue Break-Even
- 3Contribution Margin Ratio= 35.00
- 4Break-Even Revenue= 114,285.71
- 5Break-Even Units= 2,286
Assumptions and limits
- The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax or compounding frequency into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How is Revenue Break-Even calculated?
Break-even revenue = fixed costs / contribution margin ratio Revenue break-even divides fixed costs by the contribution margin ratio, giving the sales dollars needed before any profit appears.
Why does Revenue Break-Even matter?
Service and subscription businesses often think in revenue rather than units, so this version of break-even fits how they set monthly targets.
What values do I need to enter?
This calculator takes 3 inputs: Fixed costs, Contribution margin, Average unit price. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.