Free Online Break-Even Calculator
Find the units and revenue needed to cover your costs.
Rent, salaries, insurance, and other costs that do not change with volume.
Break-even units are rounded up to the next whole unit. A margin ratio below zero means each sale loses money and the business cannot break even at any volume.
Profit at different sales volumes
| Units sold | Revenue | Variable costs | Fixed costs | Profit / loss |
|---|
About the Break-Even Calculator
The break-even point is the sales volume at which total revenue equals total costs, so the business makes neither a profit nor a loss. Knowing that number helps you judge whether a product, event, or new location is viable before you commit money. This calculator needs three inputs: fixed costs, the selling price per unit, and the variable cost per unit.
The break-even formula
Contribution margin per unit is selling price − variable cost. That is the amount each sale contributes toward paying fixed costs. Break-even units are fixed costs ÷ contribution margin, rounded up to the next whole unit because you cannot sell a fraction of a product. Break-even revenue is break-even units multiplied by the selling price. The margin ratio is contribution margin divided by selling price, which tells you what percentage of each sale is available to cover fixed costs and profit.
If the contribution margin is zero or negative, selling more units never covers fixed costs. In that case the calculator warns you instead of returning a break-even point. This is a signal to raise the price, reduce variable costs, or reconsider the product. The profit table below the results shows what happens at half, one, one-and-a-half, and two times the break-even volume, so you can see how quickly profit grows once fixed costs are covered.
Why it matters
Break-even analysis turns a business idea into a concrete sales target. It also shows the risk in your cost structure: a business with high fixed costs and thin margins needs a much larger volume to survive a slow month than one with low fixed costs and healthy margins.
Frequently asked questions
Should fixed costs be monthly or yearly?
Use the same time period for every input. If fixed costs are monthly, the break-even units are the units you must sell per month. If they are annual, the result is an annual target.
What counts as a variable cost?
Costs that rise with each unit sold: materials, packaging, payment processing fees, and per-unit shipping. Salaries and rent are usually fixed unless they scale directly with output.
Does break-even include profit?
No. At break-even, profit is exactly zero. Any units sold above the break-even point generate profit equal to the contribution margin per unit, before taxes.