📉 Break-Even Point Calculator
Enter your total fixed costs, selling price per unit, and variable cost per unit to instantly find the number of units you must sell to cover all costs — plus break-even revenue, contribution per unit, and contribution margin percentage.
About
The break-even point (BEP) is the sales volume at which total revenue exactly equals total costs — profit is zero. It is one of the most fundamental metrics in business planning, pricing strategy, and investment analysis. This calculator uses the standard BEP formula: Break-Even Units = Fixed Costs ÷ (Price per Unit − Variable Cost per Unit). The denominator is the contribution per unit — the amount each sale contributes toward covering fixed costs. Contribution Margin % = (Contribution per Unit ÷ Price per Unit) × 100, showing what fraction of each revenue dollar remains after variable costs. All calculations run entirely in your browser; no data is sent to any server.
How to use
- Enter your total fixed costs — expenses that do not change with sales volume, such as rent, salaries, and insurance.
- Enter the selling price per unit — the amount customers pay for a single product or service.
- Enter the variable cost per unit — costs that rise directly with each unit produced or sold, such as materials and direct labor.
- Read the results: break-even units (how many you must sell), break-even revenue, contribution per unit, and contribution margin percentage.
- Adjust any input — results update instantly — to model different pricing, cost, or investment scenarios.
FAQ
- What is the break-even point formula?
- Break-Even Units = Fixed Costs ÷ (Price per Unit − Variable Cost per Unit). Multiply the result by price per unit to get break-even revenue.
- What is contribution margin and why does it matter?
- Contribution per unit = Price − Variable Cost. It is the amount each unit sold contributes toward covering fixed costs. A higher contribution margin means fewer units are needed to break even.
- What counts as a fixed cost versus a variable cost?
- Fixed costs stay constant regardless of output — rent, insurance, salaried staff, software subscriptions. Variable costs change with each unit produced or sold — raw materials, packaging, sales commissions, shipping.
- What if my variable cost is higher than my price per unit?
- A negative contribution margin means you lose money on every unit sold and no sales volume can cover your fixed costs. You must raise your price or reduce variable costs before a break-even point exists.
- How do I use the break-even point to set a profit target?
- Add your desired profit to the fixed costs before dividing: Target Units = (Fixed Costs + Target Profit) ÷ Contribution per Unit. This tells you exactly how many units to sell to hit that profit goal.