Break-Even Point Calculator
Enter fixed costs, price per unit, and variable cost per unit to calculate the break-even point in units and revenue.
Break-even volume is fixed costs divided by contribution margin (price minus variable cost per unit), the point where total revenue exactly covers both fixed and variable costs. Every unit sold beyond that point contributes directly to profit, which is exactly why this number is worth calculating before committing to a price or a cost structure, not after.
Frequently asked questions
What counts as a fixed cost vs. a variable cost?+
Fixed costs stay the same regardless of how much you sell, rent, salaries, insurance. Variable costs scale with each unit sold, materials, per-unit shipping, payment processing fees. Getting this split right matters, since the whole calculation depends on it.
What is contribution margin, and why does it matter?+
It's the price per unit minus the variable cost per unit, the amount each sale actually contributes toward covering fixed costs (and, beyond the break-even point, toward profit). A low contribution margin means you need a lot of volume to break even; a high one means you need less.
Why is this worth calculating before setting a price, not after?+
It turns a pricing decision into a concrete question: at this price and this cost structure, is the required sales volume actually realistic for the market? That's a much more useful question to answer before committing than after.