Break-Even Calculator

Our break-even calculator helps businesses determine the minimum number of units they need to sell to cover all fixed and variable costs, resulting in zero profit or loss.

What is Break-Even Point?

The break-even point is the level of sales at which total revenue equals total costs, meaning the business is neither making a profit nor incurring a loss.

The Formula

Break-Even Point (units) = Fixed Costs / (Price per Unit - Variable Cost per Unit)

• Fixed Costs: Costs that don't change with production (rent, salaries)
• Variable Costs: Costs that change with production (materials, labor)
• Price per Unit: Selling price of one unit

Example

Fixed Costs: $50,000, Price: $100/unit, Variable Cost: $60/unit
Break-Even = $50,000 / ($100 - $60) = 1,250 units
Revenue at Break-Even = 1,250 × $100 = $125,000