Free Break-even Calculator

Find the units or revenue you need to break even.

Break-even analysis is a core startup/small-business planning tool: it tells you the minimum sales volume before you start making a profit. The key insight is the "contribution margin" — how much each unit sale contributes toward covering fixed costs after variable costs are subtracted.

Worked Example

Example: Fixed costs $5,000/month, price $25/unit, variable cost $10/unit. Contribution margin = $25 − $10 = $15. Break-even units = $5,000 / $15 = 334 units/month.

Formula

Contribution Margin = Price − Variable Cost per Unit
Break-even Units = Fixed Costs / Contribution Margin
Break-even Revenue = Break-even Units × Price

Worked Example

Example: Fixed costs $5,000/month, price $25/unit, variable cost $10/unit. Contribution margin = $25 − $10 = $15. Break-even units = $5,000 / $15 = 334 units/month.

Formula

Contribution Margin = Price − Variable Cost per Unit
Break-even Units = Fixed Costs / Contribution Margin
Break-even Revenue = Break-even Units × Price