Break-Even Calculator
Break-even is the point where sales cover all costs, so the business is neither making nor losing money. Enter your fixed costs for the period, the price of one unit, and what each unit costs you to make or buy.
- Free
- Works offline after your first visit
- Saves on this device
- No sign-up
- Updated
How it works
Each unit sold adds its price minus its variable cost toward the fixed costs. That amount is the contribution per unit. Break-even units are the fixed costs divided by the contribution per unit, rounded up to a whole unit.
Break-even sales are those units times the price. If the price is at or below the variable cost, each sale adds nothing toward the fixed costs, and no break-even point exists.
Worked example
At $40.00 a unit, with $25.00 of cost each, you need to sell 334 units, or $13,360.00 in sales, to cover $5,000.00.
Questions
What counts as a fixed cost?
Costs that stay about the same whatever you sell, such as rent, insurance and salaried pay. Variable costs rise with each unit, such as materials and packaging.
Why round up?
A part of a unit cannot be sold. Rounding up gives the first whole number of units that covers the costs.
Does this include tax?
Not unless you put it in the price or the costs. Enter the amounts you keep, and check your local rules on tax.
More like this
- Sales Tax CalculatorAdd sales tax to a price, or take it out of a total.
- Net Promoter Score CalculatorPromoter share minus detractor share, from survey counts.
- Markup CalculatorMarkup and margin from cost and selling price.
- Lead Time CalculatorExpected arrival from order date, production and shipping days.
- ROI CalculatorSimple and yearly return on an investment.
- Commission CalculatorCommission from sales, at one flat rate or two rates.