Break-Even Calculator

Calculate a break-even point, contribution margin, target-profit sales and required selling price.

Find break-even units and sales revenue from fixed costs and per-unit contribution margin.

Result

Break-even units (whole units)500

Revenue at whole units$25,000.00

Theoretical units500

Contribution margin per unit$20.00

Contribution margin ratio40.0000%

Profit at whole units$0.00

Each unit contributes $20.00 toward fixed costs and then profit. The required unit count rounds upward to cover the selected cost and profit target.

Use the same period for fixed costs and target profit. Single-product model with constant unit price and variable cost; taxes, financing and capacity constraints are excluded. Whole-unit quantities round upward; theoretical sales can differ from whole-unit revenue.

How to use this calculator

Find break-even units and sales revenue from fixed costs and per-unit contribution margin. Enter amounts in the units shown, select the applicable options, and click Calculate. Use Reset to restore the starting values.

Calculation formula

Break-even units = fixed costs / (price − variable cost); whole units round up.

Assumptions and accuracy

Review timing, rates, fees and result notes when comparing scenarios. Future returns and rates are assumptions rather than guaranteed outcomes. Monetary display follows the currency’s precision; intermediate calculations retain additional digits.

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Break even point calculator

Find the units and sales revenue needed to cover fixed costs using the selling price and variable cost per unit. Review contribution margin, whole-unit rounding and the additional volume required for a target profit.

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Understanding this calculation

Worked examples

Cover fixed costs with 500 units

fixed: 10000; price: 50; variable: 30

Contribution margin per unit = 50 − 30 = 20.
Break-even units = 10,000 / 20 = 500; revenue = 25,000.

Break-even units (whole units): 500

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Earn 5,000 operating profit

fixed: 10000; price: 50; variable: 30; profit: 5000

Required contribution = 10,000 + 5,000 = 15,000.
Units = 15,000 / 20 = 750.

Units for target profit: 750

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Common questions

What is the break even point formula?

Units = fixed costs / (selling price − variable cost per unit). Revenue = fixed costs / contribution margin ratio. Whole-unit sales round up; exact theoretical revenue may be lower than rounded-unit revenue.

What is contribution margin ratio?

It is (selling price − unit variable cost) / selling price. At price 50 and variable cost 30, the contribution is 20 per unit and the ratio is 40%. It is not net profit margin because fixed costs remain to be covered.

Can I calculate multiple products?

This tool models one product or a deliberately entered blended unit. It does not infer a sales mix. A true multi-product analysis requires a stable product mix and weighted contribution margins.

Scope and assumptions

This is a single-product model with constant prices and unit variable costs. Fixed costs and target profit must refer to the same period. Positive contribution margin is required for units mode. Capacity, changing cost tiers, financing, tax and product mixes are not inferred.

Sources

Independent model implementation and documented equations

Calculation notes checked October 21, 2026. Examples are mathematical checks under the stated assumptions.

Calculation methods and formulas

Break-Even Point

Find break-even units and sales revenue from fixed costs and per-unit contribution margin.

Break-even units = fixed costs / (price − variable cost); whole units round up.

Target Profit

Find the number of units needed to cover fixed costs and earn a target operating profit.

Units = (fixed costs + target profit) / contribution margin per unit.

Break-Even Price

Find the unit selling price required at an entered sales volume.

Required price = variable cost + (fixed costs + target profit) / units.

See our calculation methodology and review status for data versions, rounding and validation limitations.