💰 Financial
Break-Even Calculator
Determine the break-even point for your business or product. Enter fixed costs, variable costs per unit, and unit price to find the exact number of units you need to sell to cover all costs.
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Formula
Break-Even Units = Fixed Costs / (Selling Price - Variable Cost per Unit)Fixed Costs- Costs that do not change with production volume (e.g., rent, insurance)
Variable Cost- Cost to produce one single unit
Selling Price- Price at which one unit is sold
Example
Product Break-Even
Selling a product for $50 with a $30 variable cost and $10,000 in fixed costs.
- Contribution Margin = Selling Price - Variable Cost = 50 - 30 = 20
- Break-Even Units = 10,000 / 20 = 500 units
- Break-Even Revenue = 500 units × $50 = $25,000
Frequently Asked Questions
If the selling price is lower than the variable cost per unit, you have a negative contribution margin. The break-even point can never be reached, and you lose money on every unit sold.