Break-Even Calculator

What this calculator does

The break-even point shows how many units you need to sell before revenue covers costs. It is a useful first check for pricing, product ideas and campaigns.

Formula used

Break-even units equal fixed costs divided by contribution margin per unit. Contribution margin is selling price minus variable cost.

How to read the result

A lower break-even point usually means less sales pressure, but it can come from higher prices, lower variable costs or lower fixed costs. Each lever has trade-offs.

Assumptions

• Assumes one product or an average unit.
• Assumes fixed costs and variable cost per unit stay constant.
• Does not include tax, stock losses, refunds or capacity limits.

Sources and checks

This calculator uses a standard public formula. Where rules or thresholds can change, source links are listed on the relevant page.

Frequently asked questions