Break-Even Point Calculator
Find the unit volume and revenue at which contribution exactly covers fixed costs.
About Break-Even Point Calculator
Each unit sold contributes its price less variable cost toward fixed costs; break-even is reached when those contributions exactly cover them. The margin of safety shows how far volume can fall before the business moves into loss. Break-even volume is the single most useful number when pricing a new product, because it converts an abstract margin into a concrete sales target.
Formula
Break-Even Point
Break-even units = fixed costs ÷ (price − variable cost per unit)
- contribution
- Price less variable cost, the amount each sale puts toward fixed costs
Worked example
With the default values below, Break-Even Point Calculator returns Break-Even Volume of 1,600. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Fixed costs per periodminimum 0
- 120,000
- Selling price per unitminimum 0.01
- 120
- Variable cost per unitminimum 0
- 45
- Units you expect to sellminimum 0
- 2,000
Results
- Break-Even Volume
- 1,600 units
- Break-Even Revenue
- $192,000.00
- Contribution per Unit
- $75.00
- Margin of Safety
- 20.0%
- Profit at Expected Volume
- $30,000.00
Step by step
- 1Values used
- 2Break-Even Point
- 3Break-Even Volume= 1,600 units
- 4Break-Even Revenue= 192,000.00
- 5Contribution per Unit= 75.00
- 6Margin of Safety= 20.0
- 7Profit at Expected Volume= 30,000.00
Assumptions and limits
- The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation or tax 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 Break-Even Point calculated?
Break-even units = fixed costs ÷ (price − variable cost per unit) Each unit sold contributes its price less variable cost toward fixed costs; break-even is reached when those contributions exactly cover them. The margin of safety shows how far volume can fall before the business moves into loss.
Why does Break-Even Point matter?
Break-even volume is the single most useful number when pricing a new product, because it converts an abstract margin into a concrete sales target.
What values do I need to enter?
This calculator takes 4 inputs: Fixed costs per period, Selling price per unit, Variable cost per unit, Units you expect to sell. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.