Free Break-Even Calculator
Know exactly when you start making profit
Enter your fixed costs, variable cost per unit, and selling price to instantly calculate your break-even units, break-even revenue, and contribution margin.
What Is a Break-Even Calculator?
A break-even calculator helps businesses determine the exact sales volume needed to cover all costs — both fixed and variable. It calculates the contribution margin per unit and divides total fixed costs by it to find the break-even units. Knowing your break-even point is essential for pricing decisions, financial planning, and evaluating the viability of a new product or business.
How to Use the Break-Even Calculator
Step 1 — Enter Fixed Costs
Input your total fixed costs — expenses that do not change with production volume, like rent, salaries, and insurance.
Step 2 — Enter Variable Cost per Unit
Enter the cost to produce or procure one unit of your product — raw materials, packaging, direct labour, etc.
Step 3 — Enter Selling Price per Unit
Input the price at which you sell each unit. The calculator instantly shows your contribution margin, break-even units, and break-even revenue.
Who Uses a Break-Even Calculator?
Startup Founders
Determine the minimum sales needed before launching a product to assess viability.
Retailers & Shop Owners
Find out how many units to sell each month to cover overheads and start turning a profit.
Manufacturers
Set production targets and pricing strategies based on your cost structure.
Finance Students
Practice break-even analysis concepts with a real, working calculator.
Frequently Asked Questions
What is the break-even point?
The break-even point is the sales volume at which your total revenue equals total costs — meaning you make neither a profit nor a loss. Selling beyond this point generates profit.
What is contribution margin?
Contribution margin is the difference between the selling price and variable cost per unit. It represents how much each unit sold contributes toward covering fixed costs and then generating profit.
What if my selling price is lower than variable cost?
If selling price ≤ variable cost, the contribution margin is zero or negative, meaning each unit sold increases losses. The calculator will show a warning in this case.
How is break-even revenue calculated?
Break-even Revenue = Break-even Units × Selling Price per Unit. It tells you the minimum revenue needed to cover all your costs.
Is this calculator free?
Yes, 100% free. No login, no subscription, no limits.