Break-Even Calculator Calculate break-even point in units and revenue with profit/loss projections.
Break-Even Calculator
Calculate break-even point in units and revenue with profit/loss projections.
Enter Fixed Costs
Input your total fixed costs (rent, salaries, etc.).
Set Pricing
Enter the selling price per unit and variable cost per unit.
View Analysis
See break-even units, revenue, contribution margin, and profit projections.
What Is Break-Even Calculator?
A break-even calculator determines the point at which total revenue equals total costs — the moment a business goes from losing money to making money. The break-even point in units is calculated as Fixed Costs / (Price per Unit − Variable Cost per Unit), where the denominator is the contribution margin per unit. This analysis is fundamental to business planning, pricing decisions, and investment evaluation. The calculator also computes the contribution margin ratio and break-even revenue, and shows a profit/loss projection table at various production volumes so you can see how profit scales beyond break-even. Understanding your break-even point helps determine minimum viable pricing, required sales volumes, and the impact of cost structure changes.
Why Use Break-Even Calculator?
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Instant break-even point in both units and revenue
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Contribution margin and ratio calculation
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Profit/loss projection at multiple volume levels
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Shows formula with your specific values
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Visual table for scenario comparison
Common Use Cases
Startup Planning
Determine how many sales you need before your business becomes profitable.
Pricing Strategy
Test different price points to see how they affect your break-even volume.
Cost Analysis
Evaluate the impact of changing fixed or variable costs on profitability.
Investment Decisions
Assess whether a business venture will generate sufficient volume to be profitable.
Technical Guide
The break-even formula is BEP (units) = Fixed Costs / (Price − Variable Cost per Unit). The contribution margin (CM) per unit = Price − Variable Cost, representing how much each unit sold contributes toward covering fixed costs. The CM ratio = CM / Price × 100%, showing what percentage of each dollar of revenue covers fixed costs. After break-even, each additional unit sold generates profit equal to the contribution margin. Total profit at volume Q = (Q × CM) − Fixed Costs. The model assumes linear cost and revenue functions: variable costs are constant per unit and fixed costs don't change with volume. In reality, these assumptions may break down at extreme volumes (economies of scale, step-function fixed costs), but the linear model is a solid starting point for analysis.
Tips & Best Practices
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1A lower break-even point means less risk — you need fewer sales to cover costs
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2Increasing price raises the contribution margin, lowering the break-even point
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3Reducing either fixed or variable costs lowers the break-even point
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4After break-even, each sale adds profit equal to the contribution margin
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5Monitor your actual volume relative to break-even for financial health
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🔢 Math & CalculatorsFrequently Asked Questions
Q What is the break-even point?
Q What is contribution margin?
Q Why is break-even analysis useful?
Q Does this work for services?
Q What if price equals variable cost?
About This Tool
Break-Even Calculator is a free online tool by FreeToolkit.ai. All processing happens directly in your browser — your data never leaves your device. No registration or installation required.