Break-even calculator
Calculate the units and revenue needed to cover fixed costs. Enter price, variable cost and fixed costs to get your break-even.
Result
How it works
The break-even point is the sales level at which revenue exactly covers total costs (fixed + variable). Below it you lose money; above it you profit. It is computed by dividing fixed costs by the unit contribution margin (price − variable cost per unit). This calculator gives you the break-even and, optionally, the units needed to reach a target profit.
Break-even formula
Break-even units = Fixed costs / (Unit price − Unit variable cost). Break-even revenue = Units × Price. The contribution margin is what each unit contributes to covering fixed costs and, once covered, to generating profit. If you sell 100 units above break-even and your margin is €10, your extra monthly profit is €1,000.
Frequently asked questions
Yes, for a realistic calculation. If you do not include your own salary as a fixed cost, break-even will tell you when the business stops losing money, not when it pays you. Many self-employed people miss this and believe their business is profitable when they are actually working for free.
Use the weighted average contribution margin: (Total revenue − Total variable costs) / Units sold. This calculator assumes one "typical" product. For complex portfolios, compute the average margin first.
Related tools
Other calculators and tools related to this one.
Simplified model: assumes a single product with constant price and variable cost. For multi-product or volume-discount setups, the calculation needs segmentation. Estimate only.
