Break-Even Point Calculator
Calculate how many units you need to sell to cover all costs. Find your break-even in units and revenue.
📊 Business📐 Break-Even Units = Fixed Costs / (Price per Unit - Variable Cost per Unit)
Fixed costs per month ($)
Variable cost per unit ($)
Selling price per unit ($)
Please enter valid values.
Formula & Reference
| Variable | Formula | Units |
|---|---|---|
| Break-Even Point Calculator | Break-Even Units = Fixed Costs / (Price per Unit - Variable Cost per Unit) | units |
Step-by-Step Examples
Example 1
SaaS Product
$10K fixed costs, $5 variable cost, $50 price.
- Contribution: $45 | Break-even: 222 units
- Revenue at B/E: $11,111/month
✓ 222 units/month
Example 2
Physical Product
$25K fixed, $15 variable, $40 price.
- Contribution: $25 | Break-even: 1,000 units
- Revenue: $40,000/month
✓ 1,000 units/month
Example 3
Service Business
$8K fixed, $20 variable, $100 price.
- Contribution: $80 | Break-even: 100 clients
✓ 100 clients/month
Real-World Applications
Startups
Know exactly when your business becomes profitable.
Business Owners
Make pricing decisions with break-even in mind.
Investors
Assess business viability before funding.
Product Managers
Set sales targets based on unit economics.
Common Mistakes to Avoid
⚠️
Not separating fixed and variable costs
Rent, salaries, and insurance are fixed. Materials, commissions, and shipping are variable. Mixing them gives a wrong break-even point.
⚠️
Ignoring semi-variable costs
Some costs are step-fixed — they jump at capacity thresholds (e.g., hiring another employee). Model these carefully for accurate projections.
Frequently Asked Questions
What is the contribution margin? ▾
Price minus variable cost per unit. It's the amount each unit 'contributes' to covering fixed costs and generating profit. Higher contribution margin = fewer units needed to break even.
Break-even analysis limitations? ▾
It assumes constant price and variable cost (no volume discounts, no economies of scale). Best used as a planning tool, not a precise forecast.
How to lower break-even? ▾
Raise price (most powerful lever). Reduce fixed costs. Improve operational efficiency to lower variable costs. Increase volume faster than you add fixed cost.