Calculate break-even point in units and revenue. Free online break-even analysis calculator with formula, examples, and FAQ for business planning.
The break-even point is the level of sales at which total revenue equals total costs — the point where your business neither makes a profit nor incurs a loss. The break-even calculator helps you determine how many units you need to sell and how much revenue you need to generate to cover all costs. This is a fundamental tool for business planning and decision-making.
Break-Even Units = Fixed Costs / (Price Per Unit - Variable Cost Per Unit) | Break-Even Revenue = Break-Even Units × Price Per UnitThe contribution margin (Price - Variable Cost) represents how much each unit sold contributes toward covering fixed costs. Once fixed costs are covered, each additional unit sold generates profit equal to the contribution margin. The break-even point occurs when total contribution margin equals total fixed costs.
| Input | Output |
|---|---|
| Fixed Costs: $50,000, Price: $25/unit, Variable Cost: $10/unit | Break-Even: 3,334 units, Revenue: $83,333.33 |
| Fixed Costs: $100,000, Price: $50/unit, Variable Cost: $30/unit | Break-Even: 5,000 units, Revenue: $250,000 |
| Fixed Costs: $20,000, Price: $100/unit, Variable Cost: $40/unit | Break-Even: 334 units, Revenue: $33,333.33 |