Break-even Calculator - Find Your Break-even Point Free Break-even Calculator
Calculate your break-even point in units and revenue. Enter fixed costs, variable cost per unit, and selling price to see exactly when you start making profit.
Cost & Revenue Details
Break-even Analysis
Break-even Units 0
Break-even Revenue 0
Contribution Margin / Unit 0
Contribution Margin Ratio 0%
Units Sold Revenue Profit / Loss
Break-even Calculator - Guide
What is Break-even Analysis?
Break-even analysis determines the point at which total revenue equals total costs. At this point, a business is neither making a profit nor incurring a loss.
Understanding your break-even point helps with pricing decisions, budgeting, and assessing the viability of a new product or business venture.
Break-even Formulas
Break-even Point (Units):
BEP = Fixed Costs ÷ (Selling Price − Variable Cost per Unit)
Break-even Revenue:
BE Revenue = Break-even Units × Selling Price per Unit
Contribution Margin:
CM per Unit = Selling Price − Variable Cost per Unit
CM Ratio = CM per Unit ÷ Selling Price × 100
Key Concepts
- Fixed Costs: Costs that stay the same regardless of production volume — rent, insurance, salaries, etc.
- Variable Costs: Costs that change with production volume — raw materials, direct labor, packaging, etc.
- Contribution Margin: The amount each unit sale contributes toward covering fixed costs. Higher CM = lower break-even point.
- Margin of Safety: The difference between actual sales and break-even sales. A larger margin provides more financial cushion.
Ways to Lower Your Break-even Point
- Reduce Fixed Costs: Negotiate rent, optimize staffing, or use shared workspaces.
- Lower Variable Costs: Bulk purchase discounts, optimize production processes, or find cheaper suppliers.
- Increase Selling Price: If the market allows, a higher price directly reduces the units needed to break even.
- Improve Product Mix: Focus on products with higher contribution margins.
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