Break-Even Point Calculator

When to use?

Use it before launching a product or service to find how many units you must sell to recover fixed costs. It takes the margin calculator one step further to assess viability by sales volume.

How to use

• Enter the fixed costs.
• Enter the variable cost per unit and the unit selling price.
• The contribution margin, break-even quantity, and break-even revenue are shown.

Input Explanation

Fixed costs are expenses unrelated to volume (rent, salaries); variable cost is the extra cost per unit sold; selling price is the price per unit.

Calculation Basis

Contribution margin = price − variable cost. Break-even quantity = fixed costs ÷ contribution margin, rounded up.

Usage Examples

• Review new-product volume - Enter the cost structure to find the minimum units you must sell.
• Review pricing - Vary the price to compare how the break-even quantity changes.
• Judge viability - Check whether expected sales exceed the break-even quantity to decide on a launch.

Examples

• Fixed 3,000,000, variable 6,000, price 15,000 → break-even 334 units
• Fixed 5,000,000, variable 4,000, price 9,000 → break-even 1,000 units

Cautions

• An unclear split between variable and fixed costs can produce a distorted break-even point.
• Omitting detailed accounting items such as depreciation or financing costs from fixed costs can introduce errors in the analysis.

FAQ

What if the price is below the variable cost?

You lose more with each sale, so a break-even quantity cannot be calculated.

How is the break-even quantity calculated?

Divide fixed costs by the per-unit contribution margin (price − variable cost per unit).

What is the contribution margin?

Price minus variable cost per unit — the portion of each sale that goes toward recovering fixed costs.

Are taxes or discounts included?

No. It is a simple calculation from fixed costs, variable costs, and price; taxes, discounts, and inventory costs must be considered separately.

Related Tools

• Margin & Cost Calculator - Calculate the margin from cost and selling price, or find the price from a target margin.
• Fee Calculator - Calculate the net amount after payment and platform fees.
• Price Increase/Decrease Calculator - Enter the current price and a change rate (%) to find the new price and the amount changed.
• ROI Calculator - Enter investment and return amounts to calculate profit, ROI, and the return multiple at once.
• Percentage Calculator - Find what percentage a part is of a whole, or calculate a percentage of a value.
• Discount Calculator - Enter the original price and discount rate to find the final price and the amount saved.