What is the break-even point?

It's the sales volume at which total revenue exactly equals total costs — beyond this point, additional sales generate profit.

What is contribution margin?

Contribution margin is the price per unit minus the variable cost per unit — the amount each sale contributes toward covering fixed costs.

Business Finance

Break-Even Calculator

Find out how many units you need to sell to cover your fixed costs.

Fixed costs

Price per unit

Variable cost per unit

Break-even units

334

Break-even revenue

8333.33

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About this tool

Enter your fixed costs, price per unit, and variable cost per unit to calculate your break-even point — the number of units and revenue at which your business neither makes nor loses money.

How to use this tool

1
Enter fixed costs
Type your total costs that don't change with sales volume (rent, salaries, etc).
2
Enter price and variable cost per unit
Type what you sell each unit for, and what it costs you to make each one.
3
Read your break-even point
See how many units — and how much revenue — you need to cover fixed costs.

Frequently asked questions

What is the break-even point?: It's the sales volume at which total revenue exactly equals total costs — beyond this point, additional sales generate profit.
What is contribution margin?: Contribution margin is the price per unit minus the variable cost per unit — the amount each sale contributes toward covering fixed costs.

BusinessFinance