Separate fixed and variable costs
Fixed costs stay the same whatever you sell. Variable costs rise with each unit. Getting this split right is most of the work.
Break-Even Point Calculator
Find out how many units you need to sell before your business stops losing money. Enter your fixed costs, the cost of each unit and your price to see the break-even point and a simple chart.
- 100% free
- No sign-up
- Runs in your browser
Break-even units0
Break-even revenue0
Contribution per unit0
Contribution margin0
Units for target profit—
How to use
How to use the Break-Even Calculator
- Enter your fixed costs for the period, such as rent, salaries and software.
- Enter the variable cost of producing or delivering one unit.
- Enter your selling price per unit.
- Optionally add a target profit to see the units needed to reach it.
- Read the results and chart to see where revenue overtakes cost.
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About this tool
What is the break-even point?
Your break-even point is the level of sales where total revenue exactly equals total costs, so you make neither a profit nor a loss. Below it you lose money; above it every extra sale adds profit.
The formula is simple: break-even units = fixed costs ÷ (price − variable cost per unit). The bit in brackets is the contribution margin, the amount each sale contributes towards covering fixed costs. Raising prices, cutting variable costs or lowering fixed costs all bring the break-even point closer.
Good to know
Using break-even analysis well
Test different prices
Small price changes can move your break-even point a lot. Try a few scenarios before deciding.
Use it for new products
Before launching, check whether realistic sales volumes would even cover the costs.
Revisit when costs change
Rent increases or supplier price rises shift your break-even point, so recalculate regularly.
FAQ
Break-Even Calculator FAQs
How do I calculate the break-even point?
Divide your total fixed costs by the contribution margin per unit, which is the selling price minus the variable cost per unit.
What is contribution margin?
It is what each unit sold contributes towards fixed costs and profit: selling price minus variable cost.
Can I use this for a service business?
Yes. Treat one unit as one hour, one project or one client, and use the matching variable cost and price.
What if my price is lower than my variable cost?
Then you can never break even, because each sale adds to the loss. The calculator will warn you.
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