Unlock Profitability: Free Break-Even Point Calculator for Your Business
Break-Even Point Calculator
Determine the point at which your total costs and total revenues are equal, meaning there is no net loss or gain.
Input Your Data
Costs that do not change with the level of output (e.g., rent, salaries).
Costs that vary with the level of output (e.g., raw materials, direct labor).
The price at which each unit is sold.
Your Results
Break-Even Point in Units:
0
Number of units you need to sell to cover all costs.
Break-Even Point in Sales Dollars:
$0.00
Total revenue needed to cover all costs.
How It Works
- Enter your total fixed costs (e.g., rent, administrative salaries).
- Input the variable cost per unit (e.g., cost of materials, direct labor per product).
- Provide the selling price per unit of your product or service.
- Click "Calculate" to see your break-even point in both units and sales dollars.
- The "Clear" button will reset all fields.
Formula for Break-Even Point in Units: Fixed Costs / (Selling Price per Unit - Variable Costs per Unit)
Formula for Break-Even Point in Sales Dollars: Break-Even Point in Units × Selling Price per Unit
How the break-even calculator works
The break-even point is the number of units you must sell for total revenue to equal total costs. Each unit contributes its selling price minus its variable cost toward paying the fixed costs. Enter your fixed costs, selling price and variable cost per unit.
Worked example
Fixed costs are 20,000, the selling price is 50 and the variable cost is 30 per unit. Contribution per unit = 50 − 30 = 20. Break-even = 20,000 ÷ 20 = 1,000 units, which is 50,000 in sales.
Frequently asked questions
What if the variable cost is higher than the selling price?
Each sale loses money, so there is no break-even point. You need to raise the price or cut the variable cost.
How can I lower my break-even point?
Raise the selling price, reduce the variable cost per unit, or cut fixed costs.
Related: Break-even point · Full lesson: Break-even analysis · Margin of safety · All calculators
