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Finance & money·Investment

Break-Even Calculator

Find the break-even point in units and revenue from fixed costs, selling price, and variable cost per unit. Includes contribution margin. No sign-up needed.

Added May 6, 2026

Quick examples

Input

Result

Enter a value for fixed costs (monthly) to see your result.

How it works

Calculates the break-even point — the number of units you must sell to cover all fixed costs. Also shows the contribution margin per unit and the revenue needed to break even.

Formula

Break-Even Units = Fixed Costs / (Price − Variable Cost)

Fixed Costs
Costs that don't change with volume (rent, salaries, subscriptions)
Price
Selling price per unit
Variable Cost
Direct cost per unit sold (materials, commissions, shipping)
Contribution Margin
Price − Variable Cost — how much each unit contributes to fixed costs

Step by step

  1. 01Identify all fixed costs that remain constant regardless of sales volume.
  2. 02Determine the selling price per unit and the variable cost per unit.
  3. 03Calculate contribution margin: Price − Variable Cost.
  4. 04Divide total fixed costs by the contribution margin to get break-even units.
  5. 05Multiply break-even units by the selling price to get break-even revenue.

Examples

$5k fixed costs, $50 price, $20 variable cost

With $30 contribution margin per unit and $5,000 fixed costs, you need to sell about 167 units ($8,333 in revenue) to break even.

Inputs

Fixed costs (monthly):
5000
Selling price per unit:
50
Variable cost per unit:
20

Result

Break-even units:
167
Break-even revenue:
8333.33
Note: Break-even analysis assumes a constant price and variable cost. In practice, bulk discounts and economies of scale can change both. Once you pass break-even, each additional unit sold earns its full contribution margin as profit.

Related guides

  • What Is Gross Margin?

    Understand gross margin -- the percentage of revenue remaining after subtracting COGS. Covers the formula, margin vs markup, typical margins by industry, and.

  • What Is the Break-Even Point?

    Learn what the break-even point is, how to calculate it from fixed costs and contribution margin, and how to use break-even analysis for pricing and business.

Frequently asked questions

What is the break-even point?

The break-even point is the level of sales at which total revenue equals total costs — you're neither making a profit nor a loss. Any sales above this point generate profit.

What are fixed costs vs variable costs?

Fixed costs stay constant regardless of how much you produce or sell — examples include rent, salaries, and software subscriptions. Variable costs change with volume — examples include raw materials, packaging, and sales commissions.

What is contribution margin?

Contribution margin is the selling price minus the variable cost per unit. It's how much each unit 'contributes' toward covering fixed costs and, once break-even is passed, generating profit.

How do I use this for a service business?

For services, 'units' can be client hours, projects, or subscriptions. Set the price as your rate per engagement and the variable cost as direct labour or materials per engagement.