Break-Even Calculator
The Break-Even Calculator estimates the sales volume at which revenue covers fixed and variable costs. It helps test pricing and sales assumptions before a business commits to production, inventory, or a campaign.
How to use this calculator
- Enter fixed costs, variable cost per unit, and selling price per unit; make sure all amounts refer to the same period and unit.
- Review the worked break-even quantity and compare its arithmetic with the inputs you plan to use.
- Change one input at a time when exploring a different scenario, and keep units and assumptions consistent.
Break-even units and revenue
Contribution per unit = selling price − variable cost; break-even units = fixed costs ÷ contribution per unit; break-even revenue = units × selling price.
- The calculation assumes a constant selling price, constant variable cost per unit, and a stable fixed-cost amount over the relevant range.
- The page's numerical output is calculated from the values entered; it does not independently verify whether those inputs fit the real-world situation.
Worked examples
Break-even quantity
Fixed costs are €1,000, price is €20 per unit, and variable cost is €12 per unit.
€1,000 ÷ (€20 − €12) = 125 units
Break-even is 125 units before rounding and practical operating constraints.
Understanding the result
Contribution margin is the amount left from each sale to cover fixed costs and then contribute to profit.
Mixed products, discounts, step costs, capacity limits, tax, and changing unit costs can alter the real break-even point.
Important notes
Treat the result as a scenario estimate and check whether the unit contribution is positive.
Displayed values may be rounded for readability. Keep appropriate precision for intermediate calculations and check the unit labels before using the result.
Frequently asked questions
What does the Break-Even Calculator result mean?
Contribution margin is the amount left from each sale to cover fixed costs and then contribute to profit.
What should I check before using the break-even calculator?
Treat the result as a scenario estimate and check whether the unit contribution is positive.
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Related explanations
Learn the method behind the number or compare the terminology before using the calculator.
- How to Calculate Break-Even Point — Learn the break-even formula for units and revenue and understand fixed costs, price, and variable costs.
- How to Calculate Probability — Learn basic probability formulas, complementary probability, and how to calculate simple event chances.
- Break-Even Point — Understand break-even point, contribution margin, and the basic unit break-even formula.
This page provides a calculation tool plus explanatory information so you can understand what the result means and when the underlying method may not fit your situation.