Break-even Calculator
Estimate the sales quantity needed to cover fixed and variable costs. Check each sale's contribution before planning a target.
Your result
- Units to break even
- 500
- Revenue at this quantity
- $25,000.00
- Contribution per unit
- $20.00
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Currency selection changes formatting only. No exchange rates or market prices are supplied.
Formula
Contribution = price − variable cost; units to break even = ceiling(fixed costs ÷ contribution).
Worked example
The initial example uses the following assumptions. Its result is computed by the same engine as the calculator. Measurements are metric and money amounts use USD; these are illustrative inputs, not market prices.
- Fixed costs for the period
- 10000
- Selling price per unit
- 50
- Variable cost per unit
- 30
- Units to break even: 500
- Revenue at this quantity: $25,000.00
- Contribution per unit: $20.00
Assumptions and limitations
Price and variable cost must refer to the same unit; fixed costs must cover the same period as your plan. The result rounds up to whole units and assumes constant prices and costs.
Questions about this calculation
What if variable cost exceeds price?
There is no attainable break-even point in this model: selling another unit does not help cover fixed costs.
Does break-even mean positive cash flow?
Not necessarily. Inventory, payment timing, borrowing and cash reserves are not modelled.
Useful next steps
- Profit Margin Calculator
Find profit, profit margin and markup from revenue and costs. Compare the two percentages before setting a selling price.
- Markup Calculator
Set a selling price from your cost and chosen markup. See the resulting profit margin alongside the price.