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Break-Even Point Calculator

Find your break-even point in units.

How it is calculated

Each unit sold contributes its price minus its variable cost toward paying the fixed costs. Break-even units = Fixed costs / (Price − Variable cost per unit) and Break-even revenue = Units × Price. Fixed costs are the total for the period (rent, salaries), price and variable cost are per unit. The result is not rounded up to a whole unit: 800.00 units is exact, but 733.33 means you need 734 sales in practice. The price must be higher than the variable cost, otherwise there is no break-even. Revenue is shown in dollars.

Worked example

Fixed costs are 12,000 per month; one unit sells for 25 and costs 10 to make. The contribution per unit is 25 − 10 = 15. Break-even units = 12,000 / 15 = 800.00. Break-even revenue = 800 × 25 = $20,000.00. Every unit beyond the 800th adds 15 of profit.

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Common mistakes

  • Putting a per-unit cost into the fixed-costs field, or total costs into the variable field.
  • Including fixed items such as rent in the variable cost, which overstates it.
  • Mixing periods: monthly fixed costs give monthly units, not yearly ones.
  • Using the price before discounts or VAT; use the net amount the business really receives.
  • Treating the break-even revenue as profit; it is only the level where profit is exactly zero.

About this calculator

This calculator finds the break-even point in units using Q = Fixed Costs / (Price per unit − Variable cost per unit), where the denominator is the contribution margin — the amount each unit sold contributes toward covering fixed costs after variable costs are paid. Multiplying the break-even unit count by the selling price gives break-even revenue, the sales level at which profit is exactly zero.

Small business owners and startup founders pricing a new product, accountants and financial analysts building cost-volume-profit models, and business students studying managerial accounting use this to know the minimum sales volume needed before a venture turns profitable. Enter fixed costs, price per unit, and variable cost per unit to get the break-even units and revenue.

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