Break-even calculator
Calculator
The calculator needs JavaScript. The tables below give the same numbers for common cases.
How it is worked out
- Contribution per unit = price − variable cost = $25.00 − $10.00 = $15.00.
- Break-even units = fixed costs ÷ contribution = $12,000.00 ÷ $15.00 = 800.
| Inputs | Answer |
|---|---|
| Fixed costs: 12000; Price per unit: 25; Variable cost per unit: 10 | You break even after selling 800 units ($20,000.00 in sales). |
| Fixed costs: 50000; Price per unit: 120; Variable cost per unit: 45 | You break even after selling 667 units ($80,040.00 in sales). |
| Fixed costs: 3000; Price per unit: 8; Variable cost per unit: 3.5 | You break even after selling 667 units ($5,336.00 in sales). |
How to use it
The break-even point is where revenue equals total costs. Each unit sold contributes price − variable cost toward fixed costs, so break-even units = fixed costs ÷ (price − variable cost). With $12,000 fixed costs, a $25 price and $10 variable cost you break even at 800 units.
The contribution margin ratio shows the share of each sale that goes toward fixed costs and profit.
Frequently asked questions
What is the break-even formula?
Fixed costs ÷ (price per unit − variable cost per unit).
What are fixed costs?
Costs that do not change with sales, such as rent.
What if the price is below the variable cost?
You lose money on every sale, so there is no break-even.
Method: standard arithmetic shown step by step; no outside data is used. Checked 2026-11-12.
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