Business Break-Even Calculator
Calculate the exact number of units you need to sell to cover all fixed and variable costs, and see your break-even revenue.
Cost Structure
Break-Even Units
218
Units needed to cover all costs
Break-Even Revenue
$7,630
Total revenue at break-even point
Contribution Margin per Unit
$23.00
Selling price minus variable cost
Profitability Milestone
Each unit sold beyond the break-even point generates profit equal to the contribution margin.
Below break-even: operating at a loss
At break-even: costs fully covered
218
Above break-even: generating profit
How the Break-Even Calculator Works
The break-even point is the number of units you must sell for total revenue to exactly equal total costs. At this point, your business neither makes a profit nor takes a loss. This calculator uses your fixed costs, variable cost per unit, and selling price to determine the exact break-even volume and revenue.
Break-Even Formulas
How to Lower Your Break-Even Point
Reduce Fixed Costs
Lower overhead expenses like rent, insurance, and salaries. Every dollar cut from fixed costs reduces the number of units you need to sell to break even.
Increase Selling Price
Raising prices increases your contribution margin per unit, meaning each sale contributes more toward covering fixed costs. Be mindful of how price affects demand.
Reduce Variable Costs
Negotiate with suppliers, improve production efficiency, or find cheaper materials. Lower variable costs increase the contribution margin and lower break-even volume.