Business Tools
Break-Even Analysis Calculator
Calculate break-even point in units and revenue. Input fixed costs, price per unit, and variable costs. See contribution margin, margin of safety, and target profit scenarios. 100% private browser tool.
Rent, salaries, insurance, etc. (monthly or period total)
Materials, shipping, commissions per sale
Formula: Break-Even Units = Fixed Costs ÷ (Price − Variable Cost per Unit)
Each unit sold after break-even contributes its full margin directly to profit.
Understanding Your Break-Even Point
The break-even point is the sales volume at which your business neither makes a profit nor incurs a loss. Knowing this number is fundamental for pricing decisions, cost control, and understanding how much you need to sell before the business becomes sustainable.
How to Use This Tool
- Enter your total fixed costs for the period (rent, salaries, software subscriptions, etc.).
- Enter the selling price and the true variable cost for one unit of your product or service.
- Optionally set a target profit to see how many extra units you need to sell.
- Instantly see break-even units, revenue, and contribution margin percentage.
Why Contribution Margin Matters
The contribution margin is what each sale contributes toward covering fixed costs and then generating profit. A low margin means you need to sell a lot more volume to break even. Use this calculator to experiment with pricing and cost reduction scenarios before making real business decisions.
Frequently Asked Questions
What is the break-even point?
The point at which total revenue equals total costs. Below it you lose money; above it you make profit.
Do I need to know my exact variable cost per unit?
Yes for accuracy. If you sell multiple products, use a weighted average contribution margin.
Is my business financial data secure?
Yes. All profit, cost, and revenue calculations are computed locally inside your web browser. No business financial figures or calculations are ever uploaded, saved on our servers, or shared.