Business

Break-even Calculator

Calculate break-even units and revenue from fixed and variable costs

FAQs

What is the break-even point?

It is the sales level where total revenue equals total costs, meaning profit is zero.

How to Use the Break-even Calculator

  1. Enter monthly fixed costs.
  2. Enter unit selling price.
  3. Enter variable cost per unit.
  4. Review break-even units and break-even revenue.

Break-even Formulas

Contribution Margin

Contribution margin = Price per unit - Variable cost per unit

Break-even Units

Break-even units = Fixed costs / Contribution margin

Use Cases

Launch pricing

Validate whether pricing supports fixed cost recovery.

Scenario planning

Test margin improvements from cost optimization.