📊 Break Even Calculator
Find the break-even point in units and revenue from your fixed costs, price, and variable costs.
Break Even Calculator
This calculator determines your break-even point — the number of units you must sell (and the revenue you must generate) to cover all your costs. Enter your fixed costs, selling price per unit, and variable cost per unit to see the exact break-even figures and contribution margin.
The break-even analysis is one of the most important tools for business planning. It helps you set sales targets, evaluate pricing strategies, and understand the minimum performance needed to avoid losses. The contribution margin tells you how much each unit contributes to covering fixed costs.
Frequently Asked Questions
What are fixed costs?
Fixed costs are expenses that do not change regardless of how many units you produce or sell. Examples include rent, insurance, salaries of permanent staff, equipment leases, and loan payments.
What are variable costs?
Variable costs are expenses that increase or decrease proportionally with production volume. Examples include raw materials, direct labor, packaging, and shipping costs per unit.
What is the contribution margin?
The contribution margin is the selling price per unit minus the variable cost per unit. It represents how much each unit sold contributes toward covering fixed costs and generating profit. Break-even occurs when total contribution margin equals total fixed costs.