Break-Even Point Calculator

How to use this calculator

1. Enter fixed costs, price per unit, and variable cost per unit.
2. We calculate contribution margin and divide fixed costs by that margin to find break-even units.
3. We also multiply units by price to show the revenue required to break even.

Inputs explained

Fixed costs

Overhead that doesn’t change with volume (rent, salaries, software).

Price per unit

Selling price for each unit or service sold.

Variable cost per unit

Direct cost per unit (materials, packaging, transaction fees).

When to use it

• Testing pricing changes to see how many sales cover your overhead.
• Planning production targets for a new product launch.
• Comparing fixed vs variable cost structures across scenarios.

Tips & cautions

• Keep units consistent—if you sell in packs, use pack price and pack-level variable costs.
• Include payment processing fees and shipping in variable costs for ecommerce.
• Run best/worst cases by adjusting price and variable costs to stress-test margin.
• Assumes a single product and linear costs; does not handle tiered pricing or volume discounts.
• Excludes taxes, marketing CAC, or inventory carrying costs unless you add them to fixed/variable fields.
• Does not include time-bound costs (seasonal expenses) unless you incorporate them manually.

Worked examples

Deep dive

FAQs

What if contribution margin is zero?

If price ≤ variable cost, you never cover fixed costs. Reduce costs or raise prices.

Can I include multiple products?

Use weighted averages for price and cost across products, or run separate calculations per product line.

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