Calculate your break even point
The result rounds up to the next whole unit, since you cannot sell a fraction of a unit.
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Break Even Calculator
Enter fixed costs, unit variable cost and unit selling price to see how many units you must sell before the business covers itself.
How to calculate the break even point
The break even point is the sales volume where total revenue equals total costs, so profit is exactly zero.
The formula
- Contribution margin per unit = Unit selling price − Unit variable cost
- Break even units = Fixed costs ÷ Contribution margin per unit
- Break even revenue = Break even units × Unit selling price
Fixed costs of 10,000, a unit variable cost of 30 and a unit selling price of 50 give a contribution margin of 20 per unit. 10,000 ÷ 20 = 500 units, which is 25,000 of revenue at that price.
Why the result rounds up
The calculator rounds up to the next whole unit, because a fraction of a sale does not pay a fixed cost. If the exact result is 412.4 units, 412 units still lose money and 413 units clear the fixed costs.
If the unit selling price is at or below the unit variable cost, every sale loses money and no volume can break even. The calculator reports an error instead of returning a misleading number.
What the model assumes
Fixed costs stay fixed across the period, the unit variable cost does not change with volume, and the business sells one product or a stable mix. Discounts, bulk supplier pricing and multiple products all move the real break even point, so treat the result as a starting point rather than a guarantee.
Related calculators
Break even uses the same unit price and unit cost as the profit margin calculator. If you need to set the price from a target margin, use the product pricing calculator; if you are adding a percentage to cost instead, use the markup calculator.
Questions
Does the break even point include profit?
No. At break even, revenue covers fixed and variable costs exactly and profit is zero. Every unit sold beyond that point adds the contribution margin to profit.
What is contribution margin?
It is the selling price minus the variable cost of one unit — the amount each sale contributes towards fixed costs and, after that, profit.
Can I use this for a service business?
Yes, as long as you can state a fixed cost for the period and a variable cost per job or hour. The arithmetic is the same; only the unit changes.