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Business & Accounting

Break-Even Point Calculator

Find the break-even point in units and revenue, plus the units needed to reach a target profit.

Your inputs

Results

Break-even units

500

Units to sell (rounded up)
500
Break-even revenue
$25,000.00
Units for the target profit
750
Contribution margin per unit
$20.00

✓Exact calculation — rounded only for display

What this calculator does

The break-even point is where revenue exactly covers fixed and variable costs. Below it you lose money; above it each unit contributes profit.

Formula and method

Contribution per unit = price − variable cost Break-even units = fixed costs ÷ contribution; Units for target = (fixed + target profit) ÷ contribution

Worked example

Calculated by this tool with its default inputs:

Inputs

  • Fixed costs: 10000 (any currency)
  • Price per unit: 50 (any currency)
  • Variable cost per unit: 30 (any currency)
  • Target profit (optional): 5000 (any currency)

Results

  • Break-even units: 500
  • Units to sell (rounded up): 500
  • Break-even revenue: 25,000
  • Units for the target profit: 750
  • Contribution margin per unit: 20

How to read the results

Raising price or cutting variable cost lowers the break-even point; raising fixed costs pushes it up.

Assumptions and limitations

  • Assumes everything produced is sold at a constant price.

Financial results are estimates based on the inputs and assumptions shown. They are not financial advice; confirm figures with your lender, provider or a qualified adviser before making decisions.

Questions

Why is break-even rounded up?

You cannot sell a fraction of a unit, so you need the next whole unit to avoid a loss.

Methodology and verification

Result type
Exact mathematical calculation (rounded only for display)
Formula version
1.0
Automated verification
3 reference and validation test cases, checked against independently computed values. The site cannot be built if any of them fail.
Editorial review
Awaiting human editorial review. The explanation was drafted with AI assistance; the formula and examples are verified by the automated tests above.

Privacy

Everything you enter is calculated in this browser and is not sent to Numerith or anyone else. Inputs are added to a share link only if you choose to include them. Privacy policy