Break-Even Calculator

Divide your total fixed costs by the contribution margin per unit, where the contribution margin is the selling price per unit minus the variable cost per unit. The result is the number of units you need to sell to cover all your costs. Multiply that by the price to get the break-even revenue.

The contribution margin per unit is the selling price minus the variable cost for one unit, so it's the amount each sale contributes toward covering your fixed costs. As a percentage, it's that figure divided by the selling price. The higher the margin, the fewer units you need to break even.

If the selling price is equal to or lower than the variable cost per unit, the contribution margin is zero or negative. Every sale fails to cover even its own variable cost, so no number of units will ever recover your fixed costs. Raise the price or cut the variable cost so the margin is positive.

It's a clean estimate based on the figures you enter and assumes a single price and a constant variable cost per unit. Real businesses have volume discounts, tax, seasonality, and mixed product lines, so treat the result as a planning guide, not financial or professional advice.