Business Tools
Break-Even Analysis Calculator
Calculate break-even point in units and revenue. Input fixed costs, price per unit, and variable costs. See contribution margin, margin of safety, and target profit scenarios. 100% private browser tool.
Rent, salaries, insurance, etc. (monthly or period total)
Materials, shipping, commissions per sale
Formula: Break-Even Units = Fixed Costs ÷ (Price − Variable Cost per Unit)
Each unit sold after break-even contributes its full margin directly to profit.
Understanding Your Break-Even Point
The break-even point is the sales volume at which your business neither makes a profit nor incurs a loss. Knowing this number is fundamental for pricing decisions, cost control, and understanding how much you need to sell before the business becomes sustainable.
How to Use This Tool
- Enter your total fixed costs for the period (rent, salaries, software subscriptions, etc.).
- Enter the selling price and the true variable cost for one unit of your product or service.
- Optionally set a target profit to see how many extra units you need to sell.
- Instantly see break-even units, revenue, and contribution margin percentage.
Why Contribution Margin Matters
The contribution margin is what each sale contributes toward covering fixed costs and then generating profit. A low margin means you need to sell a lot more volume to break even. Use this calculator to experiment with pricing and cost reduction scenarios before making real business decisions.