Break‑even Calculator

Use this tool to find the minimum sales volume needed so your total revenue equals total costs (no profit, no loss). Perfect for pricing, new product launches, and “what‑if” planning.

Fixed costs (per period) Selling price per unit Variable cost per unit

Worked example: Fixed = $10,000, Price = $15, Variable = $5 → Contribution margin = $10.
Break‑even units = 10,000 ÷ 10 = 1,000 units. Break‑even revenue = 1,000 × $15 = $15,000.

Formulas & Variables

Contribution margin / unit = Price − Variable cost

Break‑even units = Fixed costs ÷ (Price − Variable cost)

Break‑even revenue = Break‑even units × Price

Fixed costs: costs that don’t change with volume (rent, salaries, insurance).
Variable cost: cost that scales with units (materials, transaction fees, packaging).

Scenario Planner

Discounting price: If you discount by 10%, contribution margin shrinks → break‑even units rise.
Cost increase: If material costs rise, contribution margin falls → you need more units or a higher price.
Fixed cost shift: Adding a marketing retainer raises fixed costs → higher break‑even unless price or volume increases.

Limitations

Assumes constant price and variable cost per unit (no bulk pricing or step costs).
Single‑product model. For multi‑product mixes, use weighted average contribution margin.
Does not include inventory changes or capacity constraints.

Break‑even Calculator