Break Even Point Calculator
Find how many units you must sell, or how much revenue you need, to cover fixed and variable costs. Enter fixed costs, price per unit and variable cost per unit.
Last updated: October 2026
Break-even point
1,000 units
Formula below · 2 sources (sba.gov, investopedia.com) · Updated Oct 2026
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About this calculator
You break even when sales cover every cost, so profit is exactly zero. Each unit you sell contributes its price minus its variable cost toward the fixed costs; that difference is the contribution margin.
Break-even units = fixed costs ÷ (price − variable cost per unit) Break-even revenue = break-even units × price = fixed costs ÷ contribution margin ratio
The unit count is rounded up, because you cannot sell part of a unit and you have not broken even until the last needed unit is sold.
With the defaults, $10,000 of fixed costs, a $25 price and a $15 variable cost give a $10 contribution margin, so you need 10,000 ÷ 10 = 1,000 units, or $25,000 of sales. Every unit after that adds $10 of profit.
Fixed costs stay the same whatever you sell in the period: rent, salaries, insurance, software. Variable costs rise with each unit: materials, packaging, shipping, card and marketplace fees, commissions. Use the same period for fixed costs as for the sales you are planning, such as a month.
If the price is at or below the variable cost, every sale loses money and there is no break-even point. The calculation assumes one product, a constant price and constant costs; with several products, use the average contribution margin ratio to find break-even revenue.
| Contribution margin per unit | Break-even units |
|---|---|
| $2 | 5,000 |
| $5 | 2,000 |
| $10 | 1,000 |
| $20 | 500 |
| $50 | 200 |
| $100 | 100 |
How to use
Enter your fixed costs for the period, the selling price per unit and the variable cost per unit, then choose whether you want the answer in units or in sales dollars. Example 1 (defaults): $10,000 fixed, $25 price, $15 variable cost. Break-even: 1,000 units, or $25,000 of revenue. Example 2: a subscription box with $12,000 of monthly fixed costs, a $39 price and a $14 cost per box. Contribution $25, so 12,000 ÷ 25 = 480 subscribers. Example 3: a food product with $5,500 monthly fixed costs, an $18 price and a $4 cost per jar. 5,500 ÷ 14 = 392.9, so you need 393 jars a month, about $7,071 of sales.
Frequently asked questions
What is the break-even formula?
Break-even units = fixed costs ÷ (price per unit − variable cost per unit). Multiply by the price to get break-even revenue. For example, $10,000 ÷ ($25 − $15) = 1,000 units, or $25,000 of sales.
What is contribution margin?
The price minus the variable cost of one unit: the amount each sale contributes toward fixed costs and then profit. As a share of the price it is the contribution margin ratio; a $10 margin on a $25 price is a 40% ratio.
Which costs are fixed and which are variable?
Fixed costs do not change with how much you sell in the period, such as rent, salaries and insurance. Variable costs rise with each unit, such as materials, packaging, shipping and payment fees. Some costs are partly both; split them as well as you can.
How do I lower my break-even point?
Raise the contribution margin (a higher price or lower variable costs) or cut fixed costs. Raising a $25 price to $27 in the default example lifts the margin from $10 to $12 and cuts break-even from 1,000 to 834 units.
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