Break-Even Point Calculator

Use our free break-even calculator to determine how many units you need to sell to cover all your costs. Understand your contribution margin, set smarter pricing, and plan for profitability — all with instant results and a clear cost-volume-profit chart.

Rent, salaries, insurance, depreciation, etc.

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Selling price of one unit of your product or service.

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Raw materials, direct labor, packaging per unit.

Break-Even Point Calculator

Enter your fixed costs, price per unit, and variable cost per unit above to calculate how many units you need to sell to cover all your costs. The chart below will update automatically to show where your revenue line crosses your total cost line — that is your break-even point.

What Is the Break-Even Point?

The break-even point (BEP) is the sales volume at which total revenue equals total costs — meaning you are neither making a profit nor incurring a loss. It is one of the most fundamental metrics in business and financial planning.

The formula is: Break-even units = Fixed Costs ÷ (Price per Unit − Variable Cost per Unit). The denominator — price minus variable cost — is called the contribution margin per unit. It represents how much each unit sold contributes toward covering fixed costs.

How to Use This Calculator

  1. Enter your total fixed costs — expenses that do not change with production volume (rent, salaries, insurance). Choose monthly or annual.
  2. Enter your price per unit — what you charge customers for one product or service.
  3. Enter your variable cost per unit — costs directly tied to each unit (materials, direct labor, packaging).
  4. Review your break-even units, revenue, contribution margin, and the interactive chart showing where costs and revenue intersect.

Why the Break-Even Point Matters

Knowing your break-even point helps you set realistic sales targets, price your products effectively, and understand the minimum performance required to avoid losses. It is especially useful when launching a new product, entering a new market, or evaluating cost-cutting initiatives.