Break-Even Point Calculator (Units and Revenue)
Enter your fixed costs, the price you charge and what each unit costs you to make or deliver.
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Formula
Break-even units = fixed costs ÷ (price − variable cost)
price − variable costis the contribution per unit- Units are rounded up to a whole unit
- Break-even revenue is units × price
Worked example
Fixed costs 10,000, price 25, variable cost 15:
- Contribution:
25 − 15 = 10 - Units:
10,000 ÷ 10 =1,000 - Revenue:
1,000 × 25 =25,000
Frequently asked questions
What is the break-even point?
It is the sales volume at which total revenue equals total costs, so profit is zero. Every unit sold beyond it adds profit.
How is it calculated?
Break-even units = fixed costs ÷ (price - variable cost per unit). With 10,000 fixed, a price of 25 and 15 variable cost, that is 10,000 ÷ 10 = 1,000 units.
Why are the units rounded up?
You cannot sell part of a unit, so a result of 555.56 means 556 units are needed. With a price of 30 and variable cost of 12, revenue at break-even is 556 × 30 = 16,680.
What if the price is not above the variable cost?
Then each sale loses money and no volume reaches break-even. Raise the price or cut the variable cost.