Break-Even Units
Estimate the number of units needed to cover fixed and variable costs.
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Free Business Planning Calculator
Break-Even Calculator for Business Planning
Calculate break-even units, break-even sales revenue, contribution margin, target profit requirements and margin of safety instantly.
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Break-even units
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Break-even revenue
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Target profit
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Margin of safety
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Free Tool
Calculate Break-Even Point
Choose a calculation mode below
Break-Even Point in Units
Enter fixed costs, selling price per unit and variable cost per unit.
Break-Even Sales Revenue
Enter fixed costs and contribution margin ratio to calculate required break-even sales revenue.
Units Required for Target Profit
Calculate how many units may be required to cover fixed costs and reach a desired target profit.
Margin of Safety
Compare actual or projected sales with break-even sales.
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Browser-Based Calculation
Your calculations are performed directly in your browser. No account, registration or sign-up is required.
Four Calculation Modes
Analyze Your Business Break-Even Point
Use one calculator for common break-even, contribution and sales planning calculations.
Break-Even Revenue
Calculate the sales revenue required to reach the break-even point.
Target Profit
Estimate required units to reach a desired profit target.
Margin of Safety
Compare current or projected sales with break-even sales.
Break-Even Formulas
How Break-Even Is Calculated
Break-Even Units Formula
Fixed Costs ÷ (Price − Variable Cost)
Contribution Margin Formula
Price − Variable Cost per Unit
Break-Even Sales Formula
Fixed Costs ÷ Contribution Margin Ratio
Target Profit Units Formula
(Fixed Costs + Target Profit) ÷ Contribution
Break-Even Analysis Guide
Free Online Break-Even Calculator
Our free break-even calculator helps businesses, startups, retailers, e-commerce sellers, freelancers and service providers estimate the sales volume needed to cover fixed and variable costs.
You can calculate break-even units, break-even sales revenue, contribution margin, sales needed for a target profit and margin of safety.
What Is the Break-Even Point?
The break-even point is the level of sales at which total revenue equals total costs. At this point, the business has covered the costs included in the analysis but has not generated a profit above them.
Break-even analysis can help with pricing decisions, sales targets, cost planning and evaluating how changes in price or variable cost may affect the sales volume required to cover fixed costs.
How to Calculate Break-Even Point in Units
First subtract variable cost per unit from selling price per unit. The result is contribution margin per unit. Then divide total fixed costs by that contribution margin.
Break-Even Units = Fixed Costs ÷ (Selling Price − Variable Cost)
For example, suppose fixed costs are 10,000, selling price per unit is 50 and variable cost per unit is 30. Contribution margin per unit is 20, so the calculated break-even point is 500 units.
What Is Contribution Margin?
Contribution margin per unit is the difference between selling price per unit and variable cost per unit. Under a basic break-even model, this amount contributes toward covering fixed costs.
Contribution Margin per Unit = Selling Price − Variable Cost
Fixed Costs vs Variable Costs
| Cost Type | Description | Common Examples |
|---|---|---|
| Fixed Costs | Costs treated as unchanged within the assumed activity range | Rent, certain salaries, insurance, subscriptions |
| Variable Costs | Costs that vary with units produced or sold | Materials, unit packaging, transaction-related costs |
How to Calculate Break-Even Sales Revenue
If you know the contribution margin ratio, divide fixed costs by the contribution margin ratio expressed as a decimal.
Break-Even Sales = Fixed Costs ÷ Contribution Margin Ratio
How to Calculate Sales for a Target Profit
Break-even analysis can be extended to estimate the number of units needed for a desired target profit. Add target profit to fixed costs and divide by contribution margin per unit.
Required Units = (Fixed Costs + Target Profit) ÷ Contribution Margin per Unit
What Is Margin of Safety?
Margin of safety compares actual or projected sales with break-even sales. A positive value indicates sales are above the break-even level, while a negative value indicates sales are below it.
Margin of Safety = Actual Sales − Break-Even Sales
Who Can Use a Break-Even Calculator?
A break-even calculator may be useful for startups, retailers, e-commerce stores, manufacturers, restaurants, freelancers, agencies and service businesses that want to estimate the sales volume needed to cover included costs.
Important Assumptions in Break-Even Analysis
A simple break-even calculation assumes the entered values reasonably represent the relevant business conditions. In practice, selling prices, variable costs, fixed costs, product mix, discounts, taxes and sales volume may change.
Results should therefore be treated as estimates based on the inputs and assumptions used rather than guaranteed future business outcomes.
Business & Financial Disclaimer
This calculator provides general estimates for informational and educational purposes only. It does not provide accounting, tax, investment or financial advice. Business costs and pricing structures vary. Verify important calculations with appropriate qualified professionals when necessary.
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FAQ
Frequently Asked Questions
The break-even point is the sales level
at which total revenue equals total costs,
resulting in neither profit nor loss.
Divide fixed costs by contribution margin
per unit. Contribution margin per unit is
selling price minus variable cost per unit.
Contribution margin per unit is the
selling price per unit minus variable
cost per unit.
Add target profit to fixed costs and
divide by contribution margin per unit.
Margin of safety measures how much actual
or projected sales exceed break-even sales.
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