Break Even Calculator

Calculate how many units you need to sell before fixed and variable costs are covered.

Inputs

Costs that stay the same regardless of unit sales.

The selling price for one unit before discounts or tax.

The cost that changes with each unit sold.

How it works

  1. 1. Enter fixed costs

    Add the costs you need to cover before profit starts.

  2. 2. Add unit economics

    Enter the unit price and cost to find contribution margin.

  3. 3. Review break-even

    See the units and revenue required to cover your costs.

Frequently asked questions

How do you calculate break-even units?

Divide fixed costs by contribution margin per unit. Contribution margin per unit is price per unit minus variable cost per unit.

Why does price need to be higher than variable cost?

If variable cost is equal to or higher than price, each sale adds no contribution toward fixed costs. There is no finite break-even point.

Should fixed costs include overhead?

Yes. Include recurring costs like rent, software, salaries, equipment, or other overhead that must be covered by sales.