Break-Even Calculator
Calculate how many units you need to sell to cover all your costs and start making a profit.
Break-Even Point
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Break-Even Revenue
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Contribution per Unit
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Contribution Margin
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Fixed Costs
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Total Variable Costs
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How to Use the Break-Even Calculator
- Enter fixed costs: Total fixed costs such as rent, salaries, insurance, etc.
- Enter price per unit: The selling price of each unit.
- Enter variable cost per unit: The cost to produce or acquire each unit.
- View your results: Break-even units, revenue, and contribution margin appear instantly.
Break-Even Formula
The break-even point in units is:
Break-Even Units = Fixed Costs / (Price per Unit - Variable Cost per Unit)
The contribution margin per unit is:
Contribution = Price per Unit - Variable Cost per Unit
Break-even revenue:
Break-Even Revenue = Break-Even Units × Price per Unit
Break-Even Examples
| Fixed Costs | Price | Var. Cost | Break-Even Units | Break-Even Revenue |
|---|---|---|---|---|
| $10,000 | $50 | $20 | 334 | $16,700 |
| $5,000 | $25 | $10 | 334 | $8,350 |
| $20,000 | $100 | $40 | 334 | $33,400 |
| $50,000 | $200 | $80 | 417 | $83,400 |
| $3,000 | $30 | $15 | 200 | $6,000 |
Frequently Asked Questions
What are fixed costs?
Fixed costs are expenses that remain the same regardless of how many units you sell. Examples include rent, insurance, salaries, loan payments, and equipment leases.
What are variable costs?
Variable costs change with the number of units produced or sold. Examples include raw materials, packaging, shipping costs, sales commissions, and credit card processing fees.
How can I lower my break-even point?
You can lower your break-even point by reducing fixed costs, reducing variable costs per unit, increasing the selling price per unit, or a combination of all three. Focus on the lever that gives you the most impact.