Break-even Calculator
Find the sales volume needed to cover your costs, estimate break-even revenue, and compare pricing scenarios. Free, instant calculations directly in your browser.
Enter your business costs
Use the same currency and time period for all amounts. For example, use monthly fixed costs with the price and variable cost of each unit sold during that month.
Your break-even analysis
Calculate to see the units and revenue needed to cover your costs, plus an optional target-profit estimate.
Revenue vs. total costs
Quick scenario comparison
| Scenario | Break-even | Contribution/unit |
|---|
Illustrative scenarios assume the same sales volume model, with only the stated input changed.
What is a break-even point?
The break-even point is the sales quantity at which total revenue equals total costs. Below this point, the simplified model shows a loss; above it, each additional unit sold contributes toward profit, assuming the price and variable cost per unit remain unchanged.
Break-even formula
The amount in parentheses is the contribution per unit. Break-even revenue is the required whole-unit quantity multiplied by the selling price.
Worked example
With fixed costs of 10,000, a selling price of 50, and variable costs of 30 per unit, contribution per unit is 20. The break-even point is 10,000 ÷ 20 = 500 units, equivalent to 25,000 in sales revenue. Selling 500 units covers the modeled costs but does not produce operating profit.
How to use the calculator
- Enter the fixed costs for a defined period, such as one month.
- Enter the selling price and variable cost for a single unit.
- Optionally enter a target profit, or leave it at zero.
- Choose a currency label and select Calculate break-even.
- Review the results, chart, and scenario comparisons.
For consistent comparisons, keep the period, currency, product mix, and assumptions the same. The currency selector formats the output but does not convert exchange rates.
Break-even vs. target profit
Breaking even means recovering the modeled fixed and variable costs. A profit target requires additional contribution after fixed costs are covered.
Both calculations round up to whole units when a fractional unit is required. A result of zero units is possible when fixed costs and the target profit are both zero.
Why pricing changes matter
A higher selling price increases contribution per unit if variable cost stays constant, reducing the break-even quantity. Higher variable costs have the opposite effect. The comparison table shows illustrative changes, not demand forecasts.
Assumptions and limitations
This simplified model assumes one product or a stable product mix, a constant selling price, constant variable cost per unit, and fixed costs that remain unchanged within the relevant sales range. Real businesses may face stepped costs, returns, discounts, taxes, inventory losses, capacity constraints, or changing demand.
Planning note: Results are estimates, not forecasts or financial advice. Verify costs, taxes, demand assumptions, and capacity before making important business decisions.
Frequently asked questions
What if the selling price equals the variable cost?
Contribution per unit is zero, so selling additional units cannot recover positive fixed costs under this model. The calculator will show a validation message.
Why are break-even units rounded up?
When selling indivisible units, the next whole unit is required to fully cover the modeled costs. The calculator also shows the exact mathematical quantity.
Can I use the calculator for services?
Yes, when you can define a consistent service unit, price per service, and variable cost per service. For projects with different scopes or prices, a more detailed model may be necessary.
Does the currency selector convert money?
No. It only changes the displayed currency label. Enter all monetary amounts in the same currency.
Does breaking even mean I have made a profit?
No. Break-even means modeled revenue covers modeled costs. Profit begins above the break-even point, subject to the assumptions of the model.
Is this calculator free?
Yes. The ToolZippy calculator is free to use and does not require an account.