Break-Even Calculator
Find how many units you need to sell to cover costs.
Inputs
Rent, salaries, subscriptions.
Average selling price.
Materials, fees, fulfillment.
Results
Updates instantlyNotes
Contribution margin is 60.0% of price.
Send your request or a correction and we'll review it within 24 hours.
You can also use the Feedback button in the bottom-right corner.
| Metric | Current estimate | Decision use |
|---|---|---|
| Contribution margin | $90 per unit | Shows how much each sale contributes after variable cost. |
| Break-even units | 134 | Use as the minimum sales target before profit starts. |
| Break-even revenue | $20,000 | Compares the target sales dollars against realistic demand. |
| Margin percent | 60.0% | Lower margins require more volume or lower fixed costs. |
About This Calculator
Overview
Use this break-even calculator to find the number of units and revenue you need to cover fixed costs based on price and variable cost per unit.
When to Use It
- Evaluate whether a product price covers costs at your expected sales volume.
- Set sales targets for a new offer or launch.
- Stress test margins when costs or pricing change.
Break-even Formula
Example Calculation
- Fixed Costs: $12,000
- Price per Unit: $150
- Variable Cost per Unit: $60
- Break-even Units: 134
- Break-even Revenue: $20,100
Common Mistakes
- Using discounted price but full variable cost (or vice versa).
- Mixing monthly fixed costs with annual pricing.
- Ignoring variable costs like payment fees or shipping.
Tips & Next Steps
- Test multiple price points to see margin impact.
- Update variable costs quarterly as suppliers change.
- Use a conservative price to set safer sales targets.
FAQs
About This Calculator
Calculate your business break-even point in units and revenue. Determine how many products you need to sell to cover fixed and variable costs and start generating profit.
Frequently Asked Questions
What is the break-even point?
The break-even point is the sales volume where total revenue equals total fixed and variable costs. At that point profit is zero; every unit sold above it contributes to profit.
What formula does the break-even calculator use?
Break-even units = fixed costs / (price per unit - variable cost per unit). Break-even revenue is break-even units multiplied by price per unit.
What should I do if the contribution margin is zero or negative?
If price per unit is less than or equal to variable cost per unit, the business cannot break even at that price. Raise the price, reduce variable cost, or change the offer before setting a sales target.
The SuperCalc Editorial Team maintains calculator interfaces, formula notes, examples, and supporting explanations. Methods, assumptions, source links, and review depth vary by calculator and are documented on the relevant page where available.