Free tools
Break-Even Point Calculator
Break-even point calculator. Enter fixed costs, price per unit, and variable cost per unit to calculate the break-even point in units and revenue. Includes the formula and a worked example.
Break-even results
Contribution margin
Price − variable cost
Break-even units
Break-even revenue
Units × price
How to Calculate Break-Even Point
If you’re searching for “how to calculate break even point”, the key idea is contribution margin: how much profit each unit contributes toward covering your fixed costs.
Break-Even Point Formula (Units)
Break-even units = Fixed costs ÷ (Price per unit − Variable cost per unit)
The term (Price − Variable cost) is your contribution margin.
Break-Even Point Formula (Revenue)
Break-even revenue = Break-even units × Price per unit
Worked Example
- Fixed costs: $1,000
- Price per unit: $25
- Variable cost per unit: $10
Contribution margin = $25 − $10 = $15
Break-even units = $1,000 ÷ $15 = 66.67 → 67 units (rounded up)
Break-even revenue = 66.67 × $25 = $1,666.67
Notes
- If your price is less than or equal to your variable cost, you have no break-even point (each sale loses money before fixed costs).
- If you can only sell whole units, round break-even units up to the next whole number.