How is the break-even point calculated?

The tool divides your fixed costs by the contribution margin per unit, which is the price per unit minus the variable cost per unit. That gives the number of units you need to sell before you start making a profit.

What is break-even revenue?

Break-even revenue is the sales income you need to cover all of your costs. The calculator works it out by multiplying the break-even units by your price per unit, so you see the dollar target alongside the unit target.

Why does the result round up to a whole unit?

You cannot sell a fraction of most products, so partial units are rounded up. For example, fixed costs of 5000, a price of 25, and a variable cost of 10 give 333.3 units, which rounds up to 334 to fully cover your costs.

Break-Even Calculator

Fixed costs

Price per unit

Variable cost per unit

Break-even units

334

Break-even revenue8,333.33

What the Break-Even Calculator does

This tool shows the exact point where your sales cover your costs and you stop losing money. You enter your costs and price, and it tells you how many units you must sell, plus the revenue that those sales bring in. It is built for small business owners, freelancers, startup founders, and anyone pricing a new product who needs a clear sales target before launch.

The break-even point is one of the first numbers a business should know. If your goal feels out of reach, it is a signal to raise your price, trim costs, or rethink the plan before spending more.

How to use it

Enter your total Fixed costs, such as rent, salaries, and software that you pay no matter how much you sell.
Enter your Price per unit, the amount a customer pays for one item or sale.
Enter your Variable cost per unit, the cost tied to making or delivering each single unit.
Click Calculate to see the break-even units and the break-even revenue.
Adjust any field to test a different price or cost and watch the target update.

A quick worked example

Say your Fixed costs are 5000, your Price per unit is 25, and your Variable cost per unit is 10. Each sale contributes 15 toward fixed costs, so you need 334 units (rounded up from 333.3) and roughly 8350 in revenue to break even. If 334 units feels like too many, raising the price or cutting the variable cost lowers the target fast.

Everything runs right in your browser, so your numbers stay private and are never uploaded. It is completely free, with no sign-up and no limits.

Frequently asked questions

How is the break-even point calculated?: The tool divides your fixed costs by the contribution margin per unit, which is the price per unit minus the variable cost per unit. That gives the number of units you need to sell before you start making a profit.
What is break-even revenue?: Break-even revenue is the sales income you need to cover all of your costs. The calculator works it out by multiplying the break-even units by your price per unit, so you see the dollar target alongside the unit target.
Why does the result round up to a whole unit?: You cannot sell a fraction of most products, so partial units are rounded up. For example, fixed costs of 5000, a price of 25, and a variable cost of 10 give 333.3 units, which rounds up to 334 to fully cover your costs.

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Last updated: June 17, 2026