How to Use
- 1.
Enter total fixed costs for the product, project, or time period.
- 2.
Enter the selling price per unit.
- 3.
Enter the variable cost per unit.
- 4.
Choose the currency used for display.
- 5.
Review break-even units, break-even revenue, contribution margin, and contribution margin ratio.
- 6.
Copy the summary for your pricing notes or business plan.
Features
Break-even units calculation
Break-even revenue estimate
Contribution margin per unit
Contribution margin ratio
Fixed and variable cost inputs
Multiple currency display options
Clear break-even formula
Copyable planning summary
Frequently Asked Questions
What is a break-even point?+
The break-even point is the sales volume where revenue covers fixed and variable costs. At that point, profit is approximately zero before other adjustments.
How do I calculate break-even units?+
Divide fixed costs by contribution margin per unit. Contribution margin is selling price per unit minus variable cost per unit.
What are fixed costs?+
Fixed costs are expenses that usually stay the same over the period being analyzed, such as rent, software, salaries, insurance, equipment, and admin costs.
What are variable costs?+
Variable costs change with each unit sold. Examples include materials, packaging, payment fees, production labor, shipping, and marketplace fees.
What if my variable cost is higher than my price?+
The calculator shows break-even as not available because each unit loses money before fixed costs are covered. You may need a higher price or lower variable cost.
Can I use this for a service business?+
Yes. Treat each package, job, billable hour, or average project as a unit and enter the variable cost required to deliver it.
Does this include tax?+
Only if you include tax in your cost inputs. For tax-specific estimates, use a dedicated Sales Tax Calculator or VAT Calculator.
Is this calculator enough for a business plan?+
It is a useful planning step, but real business plans should also review cash flow, demand, pricing, refunds, taxes, capacity, and profit margins.
About this tool
Free Break-even Calculator
Use the free WebToolsEdge Break-even Calculator to estimate how many units you need to sell before a product, project, campaign, or small business starts covering its costs. Enter fixed costs, selling price per unit, and variable cost per unit to calculate break-even units, break-even revenue, contribution margin, and contribution margin ratio. A break-even calculator online is useful when you are pricing a new product, planning an ecommerce launch, estimating a service package, reviewing a campaign, or checking whether a business idea can realistically cover its costs. Instead of guessing how many sales you need, this tool shows the sales volume required before profit begins. The break-even formula is simple: fixed costs divided by contribution margin per unit. Contribution margin per unit is the selling price minus the variable cost per unit. If a product sells for 50 and costs 20 to produce or deliver, the contribution margin is 30. If fixed costs are 10,000, the break-even point is 10,000 divided by 30, or about 334 units when rounded up. Fixed costs are expenses that usually do not change directly with each sale. Examples include rent, software subscriptions, salaries, insurance, equipment, admin costs, and planned marketing spend. Variable costs change as units are sold. Examples include materials, packaging, payment processing fees, shipping, marketplace fees, production labor, and product-specific delivery costs. This break-even point calculator helps answer practical questions: how many units do I need to sell to break even, what revenue is needed to cover fixed costs, how much contribution margin does each unit create, and whether the selling price is high enough to support the business model. If variable cost is equal to or higher than selling price, the tool shows that break-even is not available because every unit fails to contribute toward fixed costs. You can use this tool with the Profit Calculator for deeper planning. The break-even calculator shows the minimum sales volume needed to cover costs, while the Profit Calculator can estimate gross profit, operating profit, net profit, margins, and return on cost after you enter expected sales. The Percentage Calculator can help compare price changes, cost increases, or margin improvements. For tax on purchases or invoices, use the Sales Tax Calculator or VAT Calculator where relevant. Break-even analysis is helpful, but it is still a planning estimate. Real businesses may have tiered pricing, discounts, refunds, chargebacks, taxes, mixed product margins, capacity limits, seasonal demand, advertising costs, and changing supplier costs. Review real numbers regularly and update the calculation when your costs or prices change. This calculator is best for simple single-product or average-unit analysis. If you sell many products, use an average selling price and average variable cost, or calculate each product separately. For major business decisions, combine break-even analysis with cash flow planning, market demand research, profit margin review, and professional accounting advice.
After finding your break-even point, estimate margin and net profit with the Profit Calculator. To compare price increases, cost changes, or contribution margin percentages, use the Percentage Calculator, or browse all Calculators.