Break-Even Point Calculator
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Formula: Break-Even Units = Fixed Costs / (Price - Variable Cost)
Break-Even Calculator
Break-even analysis tells you the minimum sales volume needed to cover all costs.
Conversion Formula
Break-Even Units = Fixed Costs / (Price - Variable Cost)
Break-even units = Fixed Costs ÷ Contribution Margin, where Contribution Margin = Price - Variable Cost per unit.
Step-by-Step Examples
Fixed: $10,000, Price: $50, Variable: $20 = 334 units, $16,700 revenue
10000 / (50-20) = 333.3, rounded up to 334
Frequently Asked Questions
What is the break-even point?
The point where total revenue equals total costs — no profit, no loss. Every unit sold beyond this point generates profit.
What are fixed vs variable costs?
Fixed costs stay the same regardless of output (rent, salaries). Variable costs change with production volume (materials, shipping).
How can I lower my break-even point?
Reduce fixed costs, increase price per unit, or decrease variable cost per unit.