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Break-Even Calculator
Free break-even calculator for small businesses and startups. Enter your fixed costs, variable cost per unit, and selling price to instantly calculate your break-even point in units and revenue. Includes contribution margin and margin ratio.
Rent, salaries, insurance
Materials, labour per unit
Price you charge customers
Enter your fixed costs, variable cost per unit, and selling price to calculate your break-even point.
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Frequently Asked Questions
What is a break-even point?
The break-even point is the level of sales at which total revenue equals total costs. There is no profit or loss at this point. Every unit sold above the break-even point contributes to profit.
What is the break-even formula?
Break-even in units = Fixed Costs divided by (Selling Price minus Variable Cost per Unit). Break-even in revenue = Fixed Costs divided by the Contribution Margin Ratio, where the Contribution Margin Ratio = (Selling Price minus Variable Cost) divided by Selling Price.
What is a fixed cost vs a variable cost?
Fixed costs stay the same regardless of sales volume: rent, salaries, insurance, software subscriptions. Variable costs scale with sales: materials, packaging, payment processing fees, delivery costs.
What is the contribution margin?
The contribution margin is the selling price minus the variable cost per unit. It represents how much each unit sold contributes to covering fixed costs. Once fixed costs are covered, the contribution margin becomes profit.
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