Break-Even Calculator
The break-even point is how much you have to sell to cover every cost — no profit, no loss. Past it, each sale is profit. Calculate it in units and in revenue, and see the profit line cross zero.
Your numbers
Result
- Contribution margin per unit
- $40.00
| Item | Value |
|---|---|
| Contribution margin per unit | $40.00 |
| Units to break even | 250 |
| Break-even revenue | $25,000.00 |
How to calculate break-even
Divide fixed costs by the contribution margin per unit (price − variable cost): units = fixed costs ÷ contribution margin. With $10,000 of fixed costs and a $40 margin, you break even at 250 units ($25,000 of revenue). The chart plots profit against units — where the line crosses zero is the break-even point.
What it is for
Knowing the break-even point sets realistic sales targets, tests whether a product or business is viable, and shows the effect of changing your price or costs. Sell above the point and you profit; below it, you lose. Raising the price or cutting the variable cost pulls the point down.
Frequently asked questions
Sources
- Cost-volume-profit analysis (managerial accounting)
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