Break-Even Calculator
Enter your fixed costs for a period, the variable cost of each unit and your selling price. The calculator finds how many units you must sell to cover all costs, the revenue that represents, and the contribution each sale makes. Add an expected sales volume to see the profit and margin of safety, and use the table to compare profit at different volumes.
How to use the Break-Even Calculator
- Enter total fixed costs for the period (rent, salaries, insurance).
- Enter the variable cost per unit and the selling price per unit.
- Optionally enter your expected sales volume.
- Press Calculate to see break-even units, revenue, contribution and margin of safety.
- Use the table or CSV to compare profit at other volumes.
Features
- Break-even units (rounded up) and revenue
- Contribution per unit and contribution margin ratio
- Profit and margin of safety at a target volume
- Profit table at several volumes with CSV download
Benefits
- Test whether a new product or price is viable before launch
- See how much sales can fall before you make a loss
- Support a business plan or loan application with clear numbers
Frequently asked questions
What is the break-even formula?
Break-even units = fixed costs ÷ (price − variable cost per unit). The amount in brackets is the contribution margin per unit.
What is the margin of safety?
The amount by which expected sales exceed break-even sales, shown in units and as a percentage of expected sales. A higher margin of safety means more room before you make a loss.
Why does it say there is no break-even point?
If the price is equal to or below the variable cost, each sale adds nothing towards fixed costs, so no sales volume can cover them.
How accurate is it?
It assumes a constant price and variable cost per unit and fixed costs that do not change with volume. Real costs often step up as you grow, so treat the result as an estimate.
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