Find out how much you need to sell to turn a profit. This free break-even calculator shows your break-even point in units and revenue, plus the contribution margin on every sale.
Results update automatically as you type. The break-even point is where total revenue equals total costs.
Use this free break-even calculator to find how many units you need to sell to cover your costs. Enter your fixed costs, price and variable cost per unit to see your break-even point in units and revenue.
A break-even calculator finds the sales level where your total revenue equals your total costs — the point where you stop losing money and start making a profit. Enter your fixed costs, price per unit and variable cost per unit, and it returns your break-even units, break-even revenue and contribution margin.
Break-even units = Fixed costs ÷ (Price − Variable cost)
The bottom part — price minus variable cost — is your contribution margin, the profit each unit contributes toward fixed costs. With $10,000 in fixed costs, a $50 price and $30 variable cost, your margin is $20, so you break even at 500 units (or $25,000 in revenue).
| Type | Definition | Examples |
|---|---|---|
| Fixed costs | Stay the same regardless of sales | Rent, salaries, insurance |
| Variable costs | Rise with each unit sold | Materials, shipping, transaction fees |
| Term | What it means |
|---|---|
| Break-even point | Where total revenue equals total costs. |
| Contribution margin | Price minus variable cost — profit per unit toward fixed costs. |
| Fixed costs | Costs that don’t change with sales volume. |
| Variable costs | Costs that increase with each unit sold. |
Divide your fixed costs by your contribution margin (price minus variable cost per unit). With $10,000 fixed costs, a $50 price and $30 variable cost, that's $10,000 ÷ $20 = 500 units.
Contribution margin is the price of a unit minus its variable cost — the amount each sale contributes toward covering fixed costs and then profit. A $50 product with $30 variable cost has a $20 margin.
Fixed costs stay the same regardless of sales, like rent and salaries. Variable costs rise with each unit sold, like materials, shipping and transaction fees.
Raise your price, reduce variable cost per unit, or cut fixed costs. Each increases your contribution margin or shrinks what you need to cover, so you break even on fewer sales.
It's the total sales dollars at the break-even point — your break-even units multiplied by your price. Above it you make a profit; below it you make a loss.
Yes, this break-even calculator is completely free, needs no sign-up, and gives instant results directly in your browser.