Break Even Calculator
Calculate the break-even point for your business. See how many units you need to sell to cover fixed and variable costs.
Break-Even Point
500 units
$17,500.00 in revenue
Contribution/Unit
$20.00
Contribution Margin
57.1%
Profit at Different Sales Volumes
125 unitsRev: $4,375.00$-7,500.00
250 unitsRev: $8,750.00$-5,000.00
375 unitsRev: $13,125.00$-2,500.00
500 unitsRev: $17,500.00+$0.00
625 unitsRev: $21,875.00+$2,500.00
750 unitsRev: $26,250.00+$5,000.00
1,000 unitsRev: $35,000.00+$10,000.00
1,500 unitsRev: $52,500.00+$20,000.00
Frequently Asked Questions
What is the break-even point?+
The break-even point is where total revenue equals total costs (fixed + variable). Below this, you lose money; above, you profit. Formula: Break-Even Units = Fixed Costs ÷ (Price - Variable Cost Per Unit).
What are fixed vs variable costs?+
Fixed costs don't change with volume: rent, salaries, insurance. Variable costs change per unit: materials, shipping, commissions. Understanding this split is key to pricing and profitability.
What is contribution margin?+
Contribution margin = (Price - Variable Cost) ÷ Price. It shows what % of each sale goes toward covering fixed costs and profit. A 57% margin means 57 cents of each dollar covers overhead and profit.