Break-Even Calculator
Find out how many units your business needs to sell to cover its costs. Enter your fixed costs, selling price and variable cost per unit in the white box. The purple box shows your break-even point and estimated profitability.
How the Break-Even Calculator works
Break-even analysis helps businesses determine how many products or services they need to sell before their total revenue covers their total costs.
What are fixed costs?
Fixed costs are expenses that generally do not change with the number of units sold over the period being analysed. Examples include rent, salaries and insurance.
What are variable costs?
Variable costs increase as more units are produced or sold. Examples include raw materials, packaging and certain transaction or production costs.
Break-even formula
Break-even units = Fixed costs ÷ (Selling price per unit − Variable cost per unit).
For example, if fixed costs are $10,000, the selling price is $50 and the variable cost is $20 per unit, each sale contributes $30 towards fixed costs.
The business must sell 334 whole units to cover its costs. At that sales volume, revenue slightly exceeds total costs.
This calculator assumes a constant selling price, constant variable cost per unit and fixed costs that remain unchanged across the sales volume. Real-world costs and prices may vary.