Business calculators
Break-Even Calculator
Find the sales volume and revenue needed to cover fixed and variable costs. Your inputs stay in this browser.
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What this calculator measures
Break-even volume is the number of units whose contribution covers fixed costs. Each unit contributes its price minus its variable cost.
Formula
Units = Fixed Costs / (Price per Unit - Variable Cost per Unit); Revenue = Units x Price
Worked example
- 1Fixed costs are $10,000, price is $50, and variable cost is $30.
- 2$20 contribution per unit means 500 units and $25,000 revenue to break even.
How to interpret the result
Actual whole-unit planning may require rounding units upward. Profit begins only after the break-even point is passed.
Common mistakes and limits
- Treating variable costs as fixed, ignoring capacity, or using a price that is not greater than variable cost.
Frequently asked questions
Why can units be fractional?
The formula is exact; operational planning should round up to a sellable whole unit.
Does break-even include tax?
Only if tax is included consistently in the entered costs.
What if contribution is zero?
No finite sales volume can cover fixed costs.