Free Break-Even Point Calculator
Find out how many units you must sell to cover your costs. See your contribution margin, margin of safety, profit at your planned volume and the sales needed to hit a profit target.
Break-Even Point Calculator: Find out how many units you must sell to cover your costs. See your contribution margin, margin of safety, profit at your planned volume and the sales needed to hit a profit target. It is free, needs no sign-up and runs in your browser. How to use it: 1) enter your fixed costs for the period, the variable cost per unit and your selling price; 2) add your planned sales volume and a target profit if you have them; 3) read the break-even point, check the chart and the what-if table, then download a CSV or PDF. Break-even is the point where total revenue equals total costs, so you make neither a profit nor a loss. The calculator splits your costs into fixed costs, which stay the same whatever you sell, and variable costs, which rise with every unit.
How the break-even calculator works
Break-even is the point where total revenue equals total costs, so you make neither a profit nor a loss. The calculator splits your costs into fixed costs, which stay the same whatever you sell, and variable costs, which rise with every unit. It runs fully in your browser and works offline.
Formulas
- Contribution margin per unit = Price – Variable cost per unit
- Contribution margin ratio = Contribution margin / Price
- Break-even units = Fixed costs / Contribution margin per unit
- Break-even revenue = Fixed costs / Contribution margin ratio
- Units for a target profit = (Fixed costs + Target profit) / Contribution margin
- Margin of safety = (Planned units – Break-even units) / Planned units
- Operating leverage = Total contribution / Profit
Example: fixed costs of 12,000 a month, a variable cost of 18 and a price of 45 give a contribution margin of 27, so you break even at 444.44 units, which rounds up to 445 units or 20,000 in revenue.
What you get
A chart of revenue against total costs with the break-even point marked, a what-if table that shows how a 10% change in price, variable cost or fixed costs moves the break-even point, and a profit table at different sales volumes.
Limitations
The model assumes one product (or an average across products), a constant price and costs that grow in a straight line. Real businesses have discounts, bulk buying savings and step costs such as hiring. Use the result as a planning guide, not financial advice.
About this tool
The Break-Even Point Calculator is built and maintained by the Hayyat Networks team, a digital marketing, SEO and web development agency working with businesses in New York and Lahore since 2016. It is part of our free Business Calculators collection.
- Last reviewed
- CostFree, no sign-up
- Where it runsRuns in your browser
- Checking resultsThe method and a worked example are shown above, so you can verify every result.
- PrivacyIt runs entirely in your browser: what you type stays on your device and is never sent to us.
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Link to this tool
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<a href="https://hayyatnetworks.com/free-tools/business-calculators/break-even-calculator/">Break-Even Point Calculator</a> by Hayyat NetworksBreak-Even Calculator FAQs
How do you calculate the break-even point?
Divide your fixed costs by the contribution margin per unit, which is the selling price minus the variable cost per unit. With fixed costs of 12,000, a price of 45 and a variable cost of 18, the break-even point is 12,000 / 27 = 444.44, so you need to sell 445 units.
What is the difference between fixed and variable costs?
Fixed costs stay the same however much you sell, such as rent, salaries, insurance and software subscriptions. Variable costs rise with each sale, such as materials, packaging, shipping, card fees and sales commission. Some costs are mixed, so split them into the fixed part and the per unit part.
What is a margin of safety?
The margin of safety is how far your planned sales can fall before you reach break-even. If you plan to sell 600 units and break even at 445, your margin of safety is 155 units, about 26%. A higher margin of safety means the business can handle a slow month more easily.
How can I lower my break-even point?
Raise your price, cut the variable cost per unit or reduce fixed costs. The what-if table shows the effect of a 10% change in each. A price rise usually has the biggest effect because the full increase goes straight into the contribution margin, as long as customers keep buying.
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