Break-Even Calculator
Calculate the break-even point for your business. Find out how many units you need to sell to cover costs.
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Rent, salaries, insurance, etc.
Materials, labor, shipping per unit
Break-Even Point
2,000 units
Break-Even Revenue
$100,000
Contribution Margin
$25
per unit
Contribution Margin %
50.0%
Per Unit Breakdown
Cost
Margin
Variable Cost ($25) Margin ($25)
Profit/Loss at Different Sales Volumes
| Units Sold | Revenue | Total Cost | Profit / Loss |
|---|---|---|---|
| 500 | $25,000 | $62,500 | -$37,500 |
| 1,000 | $50,000 | $75,000 | -$25,000 |
| 1,500 | $75,000 | $87,500 | -$12,500 |
| 2,000(Break-Even) | $100,000 | $100,000 | +$0 |
| 2,500 | $125,000 | $112,500 | +$12,500 |
| 3,000 | $150,000 | $125,000 | +$25,000 |
| 4,000 | $200,000 | $150,000 | +$50,000 |
Frequently Asked Questions
What is a break-even point?
The break-even point is the number of units you must sell so that total revenue equals total costs (fixed + variable). Beyond this point, every additional unit sold generates profit.
How do I calculate break-even units?
Divide your total fixed costs by the contribution margin per unit (selling price minus variable cost per unit). For example, $50,000 fixed costs with a $25 margin = 2,000 units.
What is contribution margin?
Contribution margin is the selling price per unit minus the variable cost per unit. It represents how much each unit sold contributes toward covering fixed costs and generating profit.