What is the break even point formula?

The break even point formula is: fixed costs ÷ (selling price per unit − variable cost per unit). The bracketed part is the contribution margin — what each sale contributes toward covering fixed costs. Enter your numbers above and the calculator applies this break-even point formula instantly.

How do I calculate how many units I need to sell to break even?

Subtract your variable cost per unit from your selling price to get the contribution margin, then divide your total fixed costs by that margin. The tool above does this for you and rounds up, because you cannot sell a fraction of a unit.

What is break even revenue?

Break even revenue is the sales revenue at which profit is exactly zero: break-even units × selling price per unit. Sell past this revenue and every additional unit adds its contribution margin to profit.

What is contribution margin and how is it calculated?

The contribution margin is selling price per unit minus variable cost per unit — the amount each sale contributes toward covering fixed costs. This calculator shows it for every run, since the whole break even analysis for a small business rests on this number.

What happens if my variable cost is higher than my selling price?

Then every sale loses money and there is no break-even point — you would need to raise the price, cut the variable cost, or both. The calculator rejects this case and tells you exactly what is wrong.

Break Even Calculator

What is Break even calculator?

Break Even Calculator — Find your break-even point: enter fixed costs, selling price, and variable cost per unit to see how many units you must sell before earning profit.

This calculator uses the open-source break-even engine (yahya5253/break-even-calc, MIT): contribution margin = selling price − variable cost, break-even units = fixed costs ÷ contribution margin, and break-even revenue = break-even units × selling price. Units are rounded up to whole units. Limitations: it assumes costs and prices stay constant as volume grows, ignores taxes, discounts, and the time value of money, and treats all units as identical. It answers "how many units to break even" — not whether those sales are achievable in your market.

Why use this break even calculator?

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Built for break even calculator

Find your break-even point: enter fixed costs, selling price, and variable cost per unit to see how many units you must sell before earning profit.

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Transparent & honest

Fixed costs, variable cost per unit, and selling price are assumed constant across all volumes — real costs often step up or taper with scale.

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Private by design

Everything runs in your browser. Your inputs never leave your device.

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Works everywhere

Fully responsive — perfect on desktop, tablet, and mobile. No app needed.

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Regularly updated

Regularly maintained and reviewed to ensure accuracy.

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Free forever

No accounts, no limits, no watermarks. Use Break Even Calculator as much as you need.

How to use Break Even Calculator

1Enter your total fixed costs (rent, salaries, subscriptions) in the "Fixed costs" field.
2Enter your selling price per unit, then your variable cost per unit (materials, packaging, per-sale fees).
3Run the tool to apply the break even point formula: fixed costs divided by the contribution margin.
4Read your break-even units (rounded up, since you cannot sell a fraction of a product) and the matching break-even revenue.
5Use the contribution margin per unit to see how much each extra sale after break-even adds to profit.

What can you do with Break Even Calculator?

Break even point formula — Find your break-even point: enter fixed costs, selling price, and variable cost per unit to see how many units you must sell before earning profit.
How many units to break even — Find your break-even point: enter fixed costs, selling price, and variable cost per unit to see how many units you must sell before earning profit.
Break even revenue calculator — Find your break-even point: enter fixed costs, selling price, and variable cost per unit to see how many units you must sell before earning profit.
Contribution margin calculator — Find your break-even point: enter fixed costs, selling price, and variable cost per unit to see how many units you must sell before earning profit.
Break even analysis for small business — Find your break-even point: enter fixed costs, selling price, and variable cost per unit to see how many units you must sell before earning profit.

Good to know

Fixed costs, variable cost per unit, and selling price are assumed constant across all volumes — real costs often step up or taper with scale.
Break-even units are rounded up to whole units; break-even revenue is computed from the unrounded unit count, exactly as the upstream engine does.
Taxes, payment-processing fees, discounts, and financing costs are not modeled unless you fold them into the per-unit inputs.
The calculator answers "how many units to break even", not whether your market can deliver that volume.

How it works

This calculator uses the open-source break-even engine (yahya5253/break-even-calc, MIT): contribution margin = selling price − variable cost, break-even units = fixed costs ÷ contribution margin, and break-even revenue = break-even units × selling price. Units are rounded up to whole units. Limitations: it assumes costs and prices stay constant as volume grows, ignores taxes, discounts, and the time value of money, and treats all units as identical. It answers "how many units to break even" — not whether those sales are achievable in your market.

Examples

Online shop: fixed costs $12,000, price $40, cost $16

Break-even: 500 units, $20,000 revenue — each unit contributes $24 toward fixed costs.

Candle business: fixed costs $3,000, price $25, cost $9

Break-even: 188 units (187.5 rounded up), $4,687.50 revenue — each unit contributes $16.

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