Break-Even Point Calculator
Find how many units you need to sell before you start making a profit.
For information only. Results are calculated from the numbers you enter and are not professional, financial or medical advice. Check anything important with a qualified adviser.
How it works
- Enter your fixed costs for the period.
- Enter the variable cost of each unit and its selling price.
- See how many units you need to sell to break even.
Frequently asked questions
How is the break-even point calculated?
Break-even units = fixed costs ÷ (price − variable cost per unit). The amount each unit contributes towards fixed costs is called the contribution margin.
What are fixed and variable costs?
Fixed costs stay the same however much you sell, like rent and salaries. Variable costs rise with each unit sold, like materials, packaging and payment fees.
Why must the price be above the variable cost?
If each unit costs more to make than it sells for, every sale adds to your loss and you can never break even.
How can I lower my break-even point?
Raise prices, reduce variable costs per unit or cut fixed costs — the calculator shows the effect of each instantly.
When will you start making money?
Break-even analysis tells you how many sales you need before your business covers its costs. It's a key number for business plans, product launches and pricing decisions.
Contribution margin
Each sale contributes its price minus its variable cost towards fixed costs. Once enough contributions cover the fixed costs, every further sale is profit.