Break-Even Point Calculator
Find out exactly how many units you need to sell before your business starts turning a profit. Enter your costs and price to see the number that matters.
Calculate your break-even point
Break-even units = fixed costs divided by (price per unit minus variable cost per unit).
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How it works
Three quick inputs reveal the sales volume you need to stop losing money.
Enter your fixed costs
Add up the expenses you pay no matter how much you sell, such as rent, software, and salaries. Enter the total for the period you are measuring.
Add price and variable cost
Enter the price you charge for one unit and the variable cost it takes to produce or deliver that unit, such as materials and shipping.
Read your break-even point
The calculator shows how many units and how much revenue you need to cover all costs. Anything above that line is profit.
Frequently Asked Questions
Common questions about break-even analysis and how to use it.
The break-even point is the level of sales where your total revenue equals your total costs. At this point you make no profit and no loss. Selling even one unit beyond it puts you into profit, while selling fewer means you are losing money.
Contribution margin is the amount each unit contributes toward covering your fixed costs after variable costs are paid. It is the price per unit minus the variable cost per unit. The higher this number, the fewer units you need to sell to break even.
Fixed costs stay the same regardless of how much you sell, such as rent and insurance. Variable costs rise and fall with each unit you produce, such as materials and packaging. Separating the two is the key to an accurate break-even number.
You can lower it three ways: raise your price per unit, cut your variable cost per unit, or reduce your fixed costs. Even small changes to any of these lower the number of units you must sell to become profitable.
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