Break-Even Calculator
Find how many units you must sell to cover your costs.
Work out the sales volume where revenue covers costs. Enter your fixed costs, selling price and variable cost per unit to see the break-even point in units and revenue — a quick sanity check for any product or side project.
Formula / method
Examples
100 units
250 units
The point where a business covers its costs
The break-even point is the number of units you must sell before revenue covers all your costs and you start making a profit. It is found by dividing fixed costs by the contribution margin — the selling price minus the variable cost of each unit.
Using it to test a plan
Break-even analysis quickly shows whether a price or cost structure is viable: if the break-even volume is far beyond what you can realistically sell, the plan needs a higher price, lower costs, or both. This tool reports the break-even units and the revenue they represent.
Where it's used
- Checking whether a product's price and costs can ever turn a profit
- Working out how many units a side project must sell to cover startup costs
- Comparing pricing scenarios before a launch
- Setting a sales target for a small business or market stall
- Deciding whether fixed costs like rent or equipment are justified by realistic volume
Real-world examples
- Fixed costs of $1,000, a $25 price and $15 unit cost give a $10 margin, so you break even at 100 units.
- With $5,000 fixed costs, a $50 price and $30 cost, the $20 margin means 250 units to break even.
- If break-even comes out at 40,000 units but you can realistically sell 5,000, the plan needs a higher price or lower costs.
FAQ
What is the contribution margin?
It is the price minus the variable cost per unit — the amount each sale contributes toward covering your fixed costs.