Break-Even Calculator
By Santaji GadepatilinUpdated October 27, 2026
Break-even units vs Selling price per unit — other inputs held at your current values.
How to use this calculator
Enter your fixed costs (rent, salaries, insurance for the period), selling price and variable cost per unit. You get the units and revenue needed to break even. To set a price for a sales target, press × on the price and type the units you expect to sell.
Formulas
Break-even units = Fixed costs ÷ (Price − Variable cost)
Break-even revenue = units × price
Worked example
Fixed costs of 50,000 a month, product sells for 40 and costs 15 to make:
- Contribution margin = 40 − 15 = 25 per unit
- Break-even = 50,000 ÷ 25 = 2,000 units
- Revenue at break-even = 2,000 × 40 = 80,000
Every unit sold beyond 2,000 adds 25 of profit.
Fixed vs variable costs
| Fixed (don’t change with sales) | Variable (per unit sold) |
|---|---|
| Rent | Raw materials |
| Salaries | Packaging |
| Insurance | Shipping |
| Software subscriptions | Sales commission |
Margin of safety
If you expect to sell 2,600 units, your margin of safety is 600 units (23%) — how far sales could fall before you make a loss.
Frequently asked questions
What is the break-even point?
The sales level where total revenue equals total costs — no profit and no loss.
What is contribution margin?
Selling price minus variable cost per unit. It is what each sale contributes towards fixed costs and then profit.
How can I lower my break-even point?
Raise prices, reduce variable costs per unit, or cut fixed costs. The chart shows how strongly price affects break-even units.