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Break-Even Calculator

Determine the exact sales volume your business must achieve to cover all expenses before generating a profit. Enter total fixed costs, selling price per unit, and variable cost per unit to discover your break-even point in units and sales dollars.

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Business & Finance(1 tool)
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How to calculate: Fixed Costs $10,000, Unit Price $50, Variable Cost $20

Break-Even Units: 334 units | Break-Even Revenue: $16,700.00 (Contribution Margin: $30/unit)
Formula:Break-Even Units = Fixed Costs / (Price per Unit - Variable Cost per Unit)
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Divides total overhead fixed costs by unit contribution margin.

Need custom inputs? Use the interactive calculator below:Live Tool
Break-Even Point
334 Units

Required Sales Revenue: $16,700.00 (Contribution Margin: $30.00/unit)

About Break-Even Calculator

Determine the exact sales volume your business must achieve to cover all expenses before generating a profit. Enter total fixed costs, selling price per unit, and variable cost per unit to discover your break-even point in units and sales dollars.

Primary Purpose: Calculate break-even sales volume and revenue

How to Use the Break-Even Calculator

  1. 1Enter Total Fixed Costs (rent, salaries, software, overhead).
  2. 2Enter Sale Price per Unit.
  3. 3Enter Variable Cost per Unit (materials, packaging, shipping).
  4. 4View minimum units required to break even and total break-even sales revenue.

Formula & Methodology

Break-Even Units = Fixed Costs / (Price per Unit - Variable Cost per Unit)

Divides total overhead fixed costs by unit contribution margin.

Real-World Worked Examples

New product line launch

Fixed Costs $10,000, Unit Price $50, Variable Cost $20

Inputs
fixedCosts:10000
price:50
variableCost:20
Result:Break-Even Units: 334 units | Break-Even Revenue: $16,700.00 (Contribution Margin: $30/unit)

Frequently Asked Questions

What is Contribution Margin?

Contribution Margin is Unit Selling Price minus Unit Variable Cost. It represents the dollar amount from each sale that contributes toward covering fixed overhead.