This free break-even calculator helps small businesses, startups, and entrepreneurs estimate how many units they need to sell before covering all fixed costs. It is useful for pricing decisions, planning product launches, and testing whether a business idea is financially realistic.
Calculator
Enter your fixed costs, price per unit, and cost per unit to calculate your break-even point.
Results
Show the Math
Break-Even Formula
The break-even point shows how many units a business must sell to cover all costs. The formula is:
Break-even units = Fixed Costs / (Price per Unit − Cost per Unit)
This means you divide your total fixed costs by the contribution margin (the difference between the selling price and the cost per unit).
How to Use This Calculator
- Enter your total fixed costs for the time period you want to analyze.
- Enter your selling price per unit and your cost per unit.
- Click calculate to see how many units you need to sell and how much revenue you need to break even.
FAQ
What is a break-even point?
Your break-even point is the number of sales needed to cover all costs, with no profit and no loss.
What are fixed costs?
Fixed costs are business expenses that stay the same regardless of how many units you sell, such as rent, software, insurance, or salaries.
Why must price per unit be greater than cost per unit?
If your selling price is equal to or less than your cost per unit, you will not generate enough contribution margin to break even.
Related Calculators
- Profit Margin Calculator – Calculate business profit and margins.
- Break-Even Calculator – See how many units you must sell to cover costs.
- Markup Calculator – Find markup percentage from product cost and price.