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Break Even Point calculator
Find how many units you must sell to cover your costs, and how many you need to reach a profit target.
Break-Even Point Pro
Advanced profitability threshold and target profit modeling
Unit Economics
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$
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Profit Target
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Calculate exactly how many units you need to sell to not just break even, but hit your specific profit goal.
Target Units
0
To Reach Profit Goal
Break-Even Point
0 Units
Target Revenue
$0.00
Unit Contribution
$0.00
Strategic Insight:
The break-even point is where total sales exactly cover total costs — no profit, no loss. Every unit sold beyond it is profit. This calculator finds that point in units and in revenue, from your fixed costs, variable cost per unit and selling price.
How to use this calculator
- Enter your total fixed costs (rent, salaries, insurance) for the period.
- Enter the variable cost of making or buying one unit.
- Enter the selling price per unit.
- Press calculate to see the break-even units and the revenue they represent.
What moves the break-even point
Lowering fixed costs, trimming variable costs or raising the price all pull the break-even point down, but each lever has limits: cut costs too far and quality suffers; raise the price too fast and volume falls. The calculation lets you test each change before committing to it.
Frequently asked questions
What is the formula for break-even point?
In units: fixed costs divided by (price per unit minus variable cost per unit). The result in units, times the price, gives the break-even revenue.
What is contribution margin?
It is the selling price minus the variable cost of one unit — the amount each sale contributes toward covering fixed costs, and then profit.
Does break-even include profit?
No. It is the zero-profit point. To target a profit, add the desired profit to the fixed costs in the same formula.