Break-Even Point Calculator
Find how many units you need to sell to cover all costs. Includes profit projections and contribution margin analysis.
How to Use This Calculator
Enter your total fixed costs — expenses that don't change with production volume, such as rent, salaries, insurance, and equipment. Enter the price you sell each unit for. Enter the variable cost per unit — the cost of materials, labor, and shipping for each unit. The calculator instantly shows how many units you need to sell to break even, your break-even revenue, contribution margin, and a full breakdown of profit and loss at different sales levels.
How Break-Even Analysis Works
Break-even analysis determines the number of units you must sell to cover all costs. Below the break-even point, you are operating at a loss. Above it, every additional unit sold generates profit. The contribution margin (price minus variable cost) is the amount each unit contributes to covering fixed costs. A higher contribution margin means you break even with fewer sales. Break-even analysis is essential for pricing decisions, financial planning, and evaluating the viability of a business or product launch. It helps answer the fundamental question: how much do we need to sell to be profitable?