# Break-Even Point Calculator

> Find the sales volume at which total revenue covers total cost.

Page: https://freecalculator.tech/tools/break-even-point-calculator
Last reviewed: 2026-09-15

## How do I work out my break-even point?

Break-even units are the fixed costs divided by the contribution margin per unit.

## Formula

Contribution margin per unit = Price − Variable cost per unit; Break-even units = Fixed costs ÷ Contribution margin per unit; Units for target profit = (Fixed costs + Target profit) ÷ Contribution margin per unit

- Contribution margin per unit = Price − Variable cost per unit; Break-even units = Fixed costs ÷ Contribution margin per unit; Units for target profit = (Fixed costs + Target profit) ÷ Contribution margin per unit.
- Inputs used: Currency, Fixed costs for the period, Selling price per unit, Variable cost per unit, Target profit (optional).
- Edge handling: Fixed costs for the period is required.; Fixed costs for the period cannot be negative.; Fixed costs for the period must be no more than 1000000000000.; Selling price per unit is required.; Selling price per unit must be greater than zero..

## Inputs

- Currency
- Fixed costs for the period
- Selling price per unit
- Variable cost per unit
- Target profit (optional)

## Worked example: $50,000 of fixed cost, $80 price, $30 variable cost

1,000 units cover the fixed cost.
1. Start with Currency: USD, Fixed costs for the period: 50000, Selling price per unit: 80, Variable cost per unit: 30, Target profit (optional): 0.
2. Apply the method: Contribution margin per unit = Price − Variable cost per unit; Break-even units = Fixed costs ÷ Contribution margin per unit; Units for target profit = (Fixed costs + Target profit) ÷ Contribution margin per unit.
3. 1,000 units cover the fixed cost.

## Common questions

### How do I work out my break-even point?

Break-even units are the fixed costs divided by the contribution margin per unit. Check the formula, example, and limitations on this page before using the result for a real professional & industry decision.

### Where does this formula come from?

OpenStax, Principles of Accounting Volume 2: Managerial Accounting, cost-volume-profit analysis. See the source link on this page.

### What kind of calculation is this?

Fixed cost divided by the contribution each unit makes towards it. Check the formula, example, and limitations on this page before using the result for a real professional & industry decision.

### What are its limits?

A single-period, linear model. It does not handle volume discounts, step costs or changing mix.

### How do I use the Break-Even Point Calculator?

Enter the required values for Currency, Fixed costs for the period, Selling price per unit, Variable cost per unit, Target profit (optional). The calculator applies the formula on this page and shows the main result with any supporting breakdown so you can check the arithmetic.

### What formula does the Break-Even Point Calculator use?

Contribution margin per unit = Price − Variable cost per unit; Break-even units = Fixed costs ÷ Contribution margin per unit; Units for target profit = (Fixed costs + Target profit) ÷ Contribution margin per unit The visible formula section above lists the calculation path and the edge cases the page handles, so the result can be checked without relying on the form alone. Check the formula, example, and limitations on this page before using the result for a real professional & industry decision.

## Limitations and assumptions

- Inputs outside the supported range are rejected rather than forced into a result.
- The result depends on the values you enter for this break-even point calculator; it does not supply missing rates, rules, prices, dates, or assumptions for you.

## Sources

- OpenStax — https://openstax.org/books/principles-managerial-accounting/pages/1-introduction

## Cite this page

- APA: Free Calculator. (2026, September 15). Break-Even Point Calculator. https://freecalculator.tech/tools/break-even-point-calculator
- MLA: "Break-Even Point Calculator." Free Calculator, 15 Sept. 2026, https://freecalculator.tech/tools/break-even-point-calculator.
- Link: Break-Even Point Calculator — Free Calculator, https://freecalculator.tech/tools/break-even-point-calculator