Break-Even Calculator
Free online break-even calculator. No sign-up, no installation. Runs entirely in your browser.
Input Your Costs & Pricing
Rent, salaries, insurance, etc.
Materials, labor per unit
Price you sell each unit for
What is Break-Even Analysis?
Break-even analysis is a financial calculation that determines the point at which your business generates enough revenue to cover all costs—neither making a profit nor a loss. At the break-even point, Total Revenue equals Total Cost.
This tool helps you understand:
- How many units you need to sell to break even
- What revenue level covers all your costs
- Your contribution margin—how much each sale contributes to covering fixed costs
- Profitability at any volume—see profit or loss at different sales levels
How to Use This Calculator
- Enter Fixed Costs: Total costs that don’t change with production (rent, salaries, insurance, etc.)
- Enter Variable Cost per Unit: Cost to produce or purchase one unit (materials, labor, shipping, etc.)
- Enter Selling Price per Unit: The price you charge customers for one unit
- Click Calculate: The tool computes break-even units, revenue, and generates a visual chart
- Review Results: See the profit/loss table for different volume levels and analyze the break-even chart
Common Use Cases
- Start-ups: Determine how many products you need to sell to become profitable
- Product Launches: Assess pricing strategy and minimum sales targets
- Cost Analysis: Evaluate the impact of reducing costs or changing prices
- Scenario Planning: Compare break-even points across different pricing models
- Business Plans: Include break-even analysis in pitch decks and financial projections
- Pricing Decisions: Understand how price changes affect profitability
Frequently Asked Questions
What is the break-even formula?
Break-Even Units = Fixed Costs ÷ (Selling Price per Unit − Variable Cost per Unit). The difference between selling price and variable cost is called the “Contribution Margin.”
Why is break-even analysis important?
It helps you understand the minimum sales required to survive as a business. Without knowing your break-even point, you can’t effectively plan pricing, set sales targets, or assess financial viability.
What is contribution margin ratio?
It’s the percentage of revenue that contributes to covering fixed costs and profit. A higher ratio means each sale is more profitable. Formula: (Selling Price − Variable Cost) ÷ Selling Price × 100%
Can I use this for multiple products?
Yes, calculate break-even for each product separately using its specific costs and pricing. For a product mix, use a weighted average selling price and variable cost.
What if variable cost exceeds selling price?
This scenario is not viable—you’d lose money on every sale. Adjust your pricing upward or reduce variable costs. This calculator will show an error for this case.
What assumptions does this calculator make?
It assumes constant fixed costs, constant variable cost per unit, constant selling price, and no change in inventory. Real-world factors like economies of scale, discounts, and seasonal variations aren’t accounted for.