📈 Business

Break-Even Calculator

Find how many units you must sell to cover fixed costs and start making profit.

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Results

Break-even units
500
Break-even revenue
$25,000.00
Contribution margin per unit
$20.00

📊 Break-Even Calculator chart

Profit by units sold — plotted against units sold.

What is the Break-Even Calculator?

Find how many units you must sell to cover fixed costs and start making profit. Pricing and profitability come down to a few core ratios. These business calculators help owners, freelancers and managers price products, protect margins and understand when an investment pays back.

Break-Even Calculator – free online business tool illustration
Break-Even Calculator — free, exact and private.

How to use the Break-Even Calculator

  1. Enter your fixed costs, your price per unit, your variable cost per unit.
  2. Results update automatically as you type; you can also press Calculate.
  3. Read the output: break-even units, break-even revenue, contribution margin per unit.
  4. Use the 📊 chart to see the result visually, then copy or share it.

Formula and method

Units = Fixed costs ÷ (Price − Variable cost)

Worked example

With fixed costs = $10,000, price per unit = $50, variable cost per unit = $30, the Break-Even Calculator returns break-even units: 500; break-even revenue: $25,000.00; contribution margin per unit: $20.00.

Tips for better results

  • Margin and markup are different: a 50% markup is only a 33.3% margin.
  • Include every variable cost (fees, shipping, payment processing) when pricing.
  • Re-run break-even numbers whenever fixed costs such as rent or salaries change.

⚠️ Business results are estimates for planning. Consult an accountant for tax and reporting decisions.

Frequently asked questions

What does the Break-Even Calculator do?

Find how many units you must sell to cover fixed costs and start making profit.

How is it calculated?

The Break-Even Calculator uses this method: Units = Fixed costs ÷ (Price − Variable cost).

Can you show an example?

With fixed costs = $10,000, price per unit = $50, variable cost per unit = $30, the Break-Even Calculator returns break-even units: 500; break-even revenue: $25,000.00; contribution margin per unit: $20.00.

Is the Break-Even Calculator accurate?

It uses standard published formulas and is tested against known values, but results are estimates for guidance. Business results are estimates for planning. Consult an accountant for tax and reporting decisions.

Is this tool free and private?

Yes — the Break-Even Calculator is completely free with no sign-up, and it runs entirely in your browser, so the values you enter are never uploaded to our servers.

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