Break-even Calculator
Find the sales quantity and revenue needed to cover costs.
Currency changes the display only. No exchange-rate conversion is applied.
Results
Break-even units
- Contribution margin per unit
- 20 USD $
- Contribution margin ratio
- 40 %
- Break-even revenue
- 25,000 USD $
- Whole units needed (rounded up)
- 500 pcs
The model assumes a constant selling price and variable cost per unit, with fixed costs unchanged over the sales range. It does not model multiple product mixes or quantity discounts. A nonpositive contribution margin cannot cover positive fixed costs and is rejected by this calculator.
Formula · How it works
Formula
Contribution margin = Selling price − Variable cost; Break-even units = Fixed costs / Contribution margin; Revenue = Units × Selling priceContribution margin per unit = selling price − variable cost. Contribution margin ratio (%) = contribution margin / selling price × 100. Break-even units = fixed costs / contribution margin. Break-even revenue = break-even units × selling price. Whole units needed rounds break-even units up; revenue uses the unrounded break-even quantity.
Worked example
Fixed costs of 10,000, a selling price of 50 and a variable cost of 30 give a contribution margin of 20 per unit and a 40% contribution margin ratio. Break-even is 500 units and 25,000 in revenue. With fixed costs of 101 instead, break-even is 5.05 units and 252.50 in revenue; selling whole units requires 6 units.
How it works
Each unit sold contributes its selling price minus variable cost toward fixed costs. Once the total contribution covers fixed costs, this model reaches break-even. If fixed costs are monthly, the resulting units and revenue are monthly targets. Use the rounded-up quantity when units cannot be sold in fractions.
Common questions
What is the break-even point?
It is the sales level where revenue equals fixed costs plus variable costs, so modeled profit is zero. Break-even units and revenue cover the same period as the fixed costs you enter.
How do fixed costs affect break-even?
With price and variable cost unchanged, higher fixed costs require more units and revenue to break even. Zero fixed costs give zero break-even units when each unit has a positive contribution margin.
What is contribution margin?
Contribution margin per unit is selling price minus variable cost per unit. It is the amount each sale contributes toward fixed costs and, after those costs are covered, profit.
Can break-even be calculated if variable cost equals or exceeds selling price?
This calculator requires selling price to exceed variable cost. At zero or negative contribution margin, additional sales do not generate a positive contribution toward fixed costs.
Why are both exact and rounded-up units shown?
The exact quantity is the mathematical break-even point and is used to calculate break-even revenue. The rounded-up quantity is the minimum whole-unit target. Its actual sales revenue can be higher than the displayed break-even revenue.