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Break-Even Calculator: Units and Revenue to Cover Costs

This free break-even calculator finds how many units you must sell, and how much revenue you need, to cover your costs. Add a profit target to see the units needed to reach it.

By Debmedia Technologies LLP · Kolkata, India · Updated

What Is It and When Do You Need It?

The break-even point is where you stop losing money and start making it. Every new business, product or event needs to know it. A clear number shows whether a plan is realistic.

Enter your fixed costs, the price and the variable cost per unit. The tool shows the break-even point and, if you add one, the sales needed for a profit target.

How to Use This Tool

  1. Enter your fixed costs.
  2. Enter the price per unit.
  3. Enter the variable cost per unit.
  4. Optionally add a profit target and press Calculate.

How the Calculation Works

Contribution margin per unit = price − variable cost. Break-even units = fixed costs ÷ contribution margin, rounded up to a whole unit. Break-even revenue = units × price. For a profit target, units = (fixed costs + target) ÷ contribution margin.

Worked Example

With fixed costs of 50,000, a price of 250 and a variable cost of 150, each unit contributes 100. Break-even is 500 units, or 125,000 in revenue. To earn 20,000 profit, sell 700 units.

Common Uses

  • Business plans and start-ups.
  • Pricing decisions.
  • Event and course budgets.
  • Deciding whether a product is worth making.

Tips and Common Mistakes

  • Include all fixed costs, such as insurance and software.
  • A small rise in price lowers the break-even a lot.
  • Check your sales forecast against the number.

Next, you may need the profit margin calculator, ROI calculator, discount calculator, percentage calculator.

Everything runs in your browser. Nothing you type is uploaded, stored or sent to any outside service.

Frequently Asked Questions

It is the number of units where total revenue equals total cost. Below it you make a loss and above it you make a profit.
Break-even units = fixed costs ÷ (price − variable cost per unit). The denominator is called the contribution margin.
Fixed costs stay the same however much you sell, such as rent. Variable costs rise with each unit, such as materials.
Then each sale loses money and you can never break even. The tool tells you.

Disclaimer: results are calculated in your browser from the numbers you enter. Check important results before you rely on them for money, health, safety or legal decisions.