Break-Even Point Calculator

Calculate break-even units, break-even revenue, contribution margin and the sales volume required to reach a target profit.

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Your inputs

Formatting only; no exchange-rate conversion.

Inputs stay in this browser session. Use the same units and time period throughout.

Your result

Put your numbers in perspective.

Enter your inputs and calculate, or load the worked example to explore the result.

Know what the number means

How it works

Break-even is the sales volume at which contribution covers fixed costs for your selected period. Contribution is price less variable cost per unit.

The formula

Contribution per unit = Selling price - Variable cost per unit Contribution margin ratio = Contribution per unit / Selling price Break-even units = Fixed costs / Contribution per unit Break-even revenue = Fixed costs / Contribution margin ratio Units for target profit = (Fixed costs + Target profit) / Contribution per unit Margin of safety units = Actual units - Break-even units Margin of safety % = Margin of safety units / Actual units x 100

Keep currency, units and time periods consistent. Percentage inputs use percentage points (enter 5 for 5%). Results are rounded only for display; tiny nonzero values may use scientific notation. Undefined ratios are shown as unavailable.

Worked example

Selling price: $50; Variable cost / unit: $30; Fixed costs: $10,000; Contribution / unit: $20; Contribution margin: 40%; Break-even units: 500; Break-even revenue: $25,000; Units for $5,000 target profit: 750.

Calculation method

Fixed costs do not change with the modeled volume; variable costs are incurred on each unit. Mixing annual rent with monthly sales creates a misleading target.

Interpretation

Required units round upward, while theoretical break-even revenue uses the exact contribution ratio. Margin of safety compares actual volume with the unrounded threshold.

Limitations

A non-positive contribution cannot fund fixed costs. This simple model assumes a single product or a stable product mix and unchanged unit economics.

Method and reference sources

Method and content checked 2026-09-20. These sources provide background, not endorsement or professional certification. The formula and limitations above define this calculator.

  • SBA — Break-even pointContribution, variable costs and fixed-cost break-even context; tool-specific extensions are explained above.

Frequently asked questions

Why is break-even unavailable when variable cost equals price?

There is no contribution from each unit to cover fixed costs. More sales at the same economics cannot cover positive fixed costs; change price or variable cost first.

What is a worked example for Break-Even Point?

Selling price: $50; Variable cost / unit: $30; Fixed costs: $10,000; Contribution / unit: $20; Contribution margin: 40%; Break-even units: 500; Break-even revenue: $25,000; Units for $5,000 target profit: 750.

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