Break-Even Point Calculator
How many units you must sell to cover your costs — plus the break-even revenue.
Result
Break-even units
167
Break-even revenue
835,000.00
How it works
The break-even point is where revenue finally covers all costs: fixed costs ÷ (price − variable cost per unit). The denominator is the contribution margin — what each sale leaves over to chip away at the fixed costs. With 10,000 of fixed costs, a price of 25 and a variable cost of 15, each sale contributes 10, so 1,000 units break even. Below that you are financing the business; above it, every additional unit contributes its full 10 to profit, which is why the curve turns so sharply once the point is passed. It is the first number to compute before launching anything, because it converts a business idea into a testable question: can I realistically sell that many? An answer that requires implausible volume is telling you the price or the cost structure is wrong, not that you need to try harder.
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Frequently asked questions
What is the break-even point?
The number of units to sell so that profit is zero — beyond it, you make a profit.
What if price is below variable cost?
Then you lose money on every unit and never break even — raise the price or cut the variable cost.
How do I lower my break-even point?
Three levers: cut fixed costs, raise the price, or reduce the variable cost per unit. Raising the price works fastest because it widens the contribution margin directly — but only if volume holds.
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