Break-Even Calculator
The break-even point is the number of units you must sell before you start making a profit, and every small business plan should know it. Enter your total fixed costs (rent, salaries, software and anything that does not change with volume), the price you sell each unit for, and the variable cost of producing one unit (materials, shipping, payment fees). This calculator finds the contribution margin per unit, then divides your fixed costs by it to give the break-even quantity, and multiplies that by price to show the break-even revenue. If the selling price is not above the variable cost, it tells you plainly that you can never break even at that price. Use it to test pricing, model a new product, or set a sales target. All math runs in your browser.
How to use Break-Even Calculator
- Enter your fixed costs.
- Enter the price per unit.
- Enter the variable cost per unit.
- Read the break-even units and revenue.
Frequently asked questions
How is the break-even point calculated?
It divides your fixed costs by the contribution margin per unit, which is the price per unit minus the variable cost per unit.
What is contribution margin?
It is the amount each sale contributes toward covering fixed costs, equal to the selling price minus the variable cost of that unit.
What revenue do I need to break even?
It multiplies the break-even units by the price per unit to show the sales revenue needed to cover all costs.
What is Break-Even Calculator?
The break-even point is the number of units you must sell before you start making a profit, and every small business plan should know it. Enter your total fixed costs (rent, salaries, software and anything that does not change with volume), the price you sell each unit for, and the variable cost of producing one unit (materials, shipping, payment fees).
Is Break-Even Calculator free to use?
Yes. Break-Even Calculator is completely free, with no sign-up and no usage limits.
Does Break-Even Calculator work in a web browser?
Yes. Break-Even Calculator runs in any modern web browser. There is nothing to download or install.
Is my data private with Break-Even Calculator?
Yes. Break-Even Calculator runs entirely on your device in your browser, so nothing you enter is uploaded to a server.
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