Break-Even Point Calculator
Calculate sales volume and revenue required to cover fixed and variable costs.
Last reviewed by the myCalculator Editorial Team
Input Parameters
Calculation Results
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Formula & How Break-Even Point Calculator Works
The break-even point is the number of units you must sell before you cover your costs: fixed costs ÷ (selling price − variable cost per unit). With fixed costs of $30,000, a $120 price and $50 of variable cost per unit, each sale contributes $70 toward fixed costs, so break-even is 30,000 ÷ 70 = 429 units, or about $51,430 of revenue. Selling more than that is profit, and selling fewer is a loss. Test how the figure changes if you raise your price, cut costs or reduce fixed overheads. Break-even is a planning guide, and it assumes your costs and price stay constant.
- Enter Total Fixed Costs ($): Input your target parameter value.
- Enter Selling Price per Unit ($): Input your target parameter value.
- Enter Variable Cost per Unit ($): Input your target parameter value.
- Apply Formula: Calculate using
Break-Even Units = Fixed Costs / (Price - Variable Cost). - Review Results: View exact computed answers, metrics, and worked mathematical proofs.
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Frequently Asked Questions (FAQs)
What is contribution margin?
Selling price minus variable cost per unit.
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Calculations and mathematical logic on this page are grounded in published statutory rules, regulatory standards, and official government data published by the following bodies:
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