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Break-Even Calculator
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This Break-Even Calculator works out how many units you need to sell, and the resulting revenue, to cover your fixed costs — the point where total revenue equals total costs and profit is zero. Enter your total fixed costs, variable cost per unit, and selling price per unit, and it computes the contribution margin (the profit each unit contributes toward covering fixed costs) along with the exact break-even point. It's a standard early-stage planning tool for pricing decisions, new product launches, and understanding how volume affects profitability. Everything runs locally in your browser. Scroll down to enter your cost structure.
Features
- Calculates break-even units and revenue
- Shows contribution margin per unit and as a percentage
- Validates that price exceeds variable cost
- Instant recalculation as you adjust inputs
Why use this break-even calculator?
- Clarifies the sales volume needed before turning a profit
- No manual algebra required
- Fully private — nothing uploaded
- Free with unlimited use
Frequently asked questions
What is the break-even point?
It's the sales volume (in units or revenue) at which total revenue exactly equals total costs, meaning the business or product neither makes nor loses money at that point.
What is contribution margin?
It's the amount each unit sold contributes toward covering fixed costs, calculated as price per unit minus variable cost per unit; once fixed costs are covered, contribution margin becomes profit.
What counts as a fixed cost vs. a variable cost?
Fixed costs (rent, salaries, insurance) don't change with sales volume; variable costs (materials, per-unit shipping, transaction fees) scale directly with each unit sold.
What if my price is lower than my variable cost?
You'd lose money on every unit sold regardless of volume — the calculator flags this because there's no break-even point possible until price exceeds variable cost.
Does this account for taxes?
No, this is a pre-tax contribution margin analysis; taxes would be applied to any profit after the break-even point is exceeded.