Break-Even Calculator
Enter your fixed costs, the price you charge per unit, and the variable cost per unit to see how many units and how much revenue you need to break even.
Costs and price
Total costs that do not change with volume, such as rent and salaries.
The selling price of a single unit, greater than $0.
The cost tied to producing one unit, such as materials and shipping.
You need to sell 1,000 units to cover $10,000.00 in fixed costs.
- Break-even revenue
- $25,000.00
- Contribution margin per unit
- $10.00
How the break-even point is found
The contribution margin is the price per unit minus the variable cost per unit — the amount each sale contributes toward covering fixed costs. Dividing total fixed costs by the contribution margin gives the number of units needed to break even. If the price does not exceed the variable cost, every sale loses money and there is no break-even point.
Break-even units = Fixed costs / (Price − Variable cost)Break-even revenue = Break-even units × Price- Fixed costs
- Costs that do not change with volume
- Price
- Selling price per unit
- Variable cost
- Cost tied to each unit sold
$10,000 fixed costs, $25 price, $15 variable cost
Suppose fixed costs are $10,000, you sell each unit for $25, and the variable cost per unit is $15. The contribution margin is $25 − $15 = $10 per unit. Break-even units are $10,000 / $10 = 1,000 units, and break-even revenue is 1,000 × $25 = $25,000.
This is an educational calculation based only on the values you provide. It is not accounting or tax advice.
What this calculator assumes
- Price and variable cost per unit are constant across every unit sold — no volume discounts or bulk savings.
- Fixed costs stay fixed across the volume range you are modeling.
- A single product is modeled, not a blended mix of products.
- No taxes are modeled.
Break-even FAQ
What is the contribution margin?
It is the price per unit minus the variable cost per unit — the money each sale contributes toward fixed costs and, once those are covered, toward profit. A larger contribution margin means fewer units are needed to break even.
Why can’t I break even at some prices?
If the price per unit is at or below the variable cost per unit, the contribution margin is zero or negative, so each sale adds to your losses. There is no break-even point until the price rises above the variable cost.
Sources and review notes
- U.S. Small Business Administration — break-even and financial planning guidance
- Government of Canada — business planning and break-even guidance
Methodology last checked Jul 14, 2026. Formula implementation is covered by deterministic unit tests. No financial professional review is claimed yet.