Break-Even Analysis Calculator
Find your break-even point from fixed costs, variable cost per unit, and selling price. Break-even units = Fixed costs ÷ (Price − Variable cost). Useful for pricing and production planning.
Break-even analysis calculator
Result
What is this?
Break-even analysis finds the point where total revenue equals total costs—no profit, no loss. Break-even units = Fixed costs ÷ (Price − Variable cost per unit). Contribution margin must be positive. Fixed costs (rent, salaries) stay the same regardless of output. Variable costs (materials, labor per unit) change with production. The contribution margin (price − variable cost) is what each unit contributes toward covering fixed costs. Once you cover fixed costs, each additional unit is profit. The calculator also shows break-even revenue. Essential for any business or pricing decision.
When to use
Use for pricing, production planning, or startup viability. Example: $10k fixed costs, $5 variable, $15 price → 1,000 units to break even. Revenue at break-even = $15,000. Startups determine viability before launching. Businesses set minimum order quantities. See how price changes affect break-even. Understand the impact of fixed vs variable costs. Essential for any product or service. Run scenarios with different assumptions. Know your numbers before you commit.
How to use
Break-even units = Fixed costs ÷ (Price − Variable cost per unit). Break-even revenue = Break-even units × Price.
Contribution margin = Price − Variable cost. Must be positive to break even.
Frequently asked questions
- Break-even analysis finds the point where total revenue equals total costs—no profit, no loss. Units = Fixed costs ÷ (Price − Variable cost per unit).
- Fixed costs stay the same regardless of output (rent, salaries). Variable costs change with production (materials, labor per unit).
- Contribution margin = Price − Variable cost per unit. It is the amount each unit contributes toward covering fixed costs. Must be positive to break even.