Business Finance
Break-Even Calculator
Find the sales volume and revenue needed to cover fixed costs using price, variable cost, and optional expected units.
Break-even units
400.00
Results update when the form is submitted.
Detailed breakdown
- Contribution per unit
- $30.00
- Contribution margin ratio
- 60.00%
- Break-even units
- 400.00
- Break-even revenue
- $20,000.00
- Expected profit or loss
- $6,000.00
- Margin of safety
- 33.33%
How this calculator works
The calculator divides fixed costs by contribution per unit. If price is not above variable cost, break-even is not possible.
Formula
break_even_units = fixed_costs / (selling_price_per_unit - variable_cost_per_unit)Example calculation
With 12,000 fixed costs, 20 variable cost, and 50 selling price, break-even is 400 units.
Important considerations
The result assumes constant price and variable cost. Capacity limits, refunds, taxes, and payment timing are not included.
FAQs
What if price is below variable cost?
The calculator flags that break-even is not possible because each unit loses money before fixed costs.
What is margin of safety?
It shows how far expected sales are above break-even sales.
Related tools
Profit Margin Calculator, Markup Calculator, Startup Runway Calculator
Related guides
How to Calculate Break-Even Point for a Small Business, How to Price a Product or Service for Profit
Disclaimer
Results are estimates for planning purposes and are not financial, tax, legal, accounting, or investment advice.