Break-Even Point Calculator
Find the sales volume at which total revenue covers total cost.
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
Read the guide: what is the difference between margin and markup?
What this calculator does
Fixed cost divided by the contribution each unit makes towards it. All figures are the organisation's own. No typical margin, price or cost structure is suggested.
Use it to turn Currency, Fixed costs for the period, Selling price per unit, Variable cost per unit, and the other shown inputs into a checked result you can compare, copy, or rerun with different assumptions.
The page shows the formula, a numeric worked example, and the assumptions that affect this professional & industry calculation.
Inputs and what they mean
- Currency
- — Amounts are shown in the currency you pick. No exchange rate is applied..
- Fixed costs for the period
- — number value.
- Selling price per unit
- — number value.
- Variable cost per unit
- — number value.
- Target profit (optional)
- — number value.
How to use it
- Enter your own figures — the calculator never fills in a rate, price or benchmark for you.
- Press Calculate to see the result.
- Read the formula, variables, assumptions and source below the result before you rely on it.
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.
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..
Worked example
$50,000 of fixed cost, $80 price, $30 variable cost
- Start with Currency: USD, Fixed costs for the period: 50000, Selling price per unit: 80, Variable cost per unit: 30, Target profit (optional): 0.
- 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.
- 1,000 units cover the fixed cost.
Reading the result
The headline figure is the main answer. Any breakdown underneath shows the parts that make it up, so you can check the working and see what changes when you adjust an input.
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.
Reference: OpenStax — Principles of Accounting, Volume 2: Managerial Accounting
Last reviewed:
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.
Formula, source and verification
Fixed cost divided by the contribution each unit makes towards it.
The question it answers: How many units must we sell before we stop losing money?
The 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
- F — Fixed costs
- (currency). Costs that do not change with volume in the period.
- P — Selling price per unit
- (currency). Price the organisation charges.
- V — Variable cost per unit
- (currency). Cost that varies directly with each unit.
- T — Target profit
- (currency). Optional profit the organisation wants.
Units: Currency per unit; units out.
What kind of calculation this is
Deterministic formula. The same inputs always give the same answer. The maths is fixed and does not depend on judgement.
Method
All figures are the organisation's own. No typical margin, price or cost structure is suggested.
Published alternatives
More than one published form of this calculation exists. Each one assumes something different, so the right one depends on your situation.
Break-even in units (used by default)
Units = (Fixed costs + Target profit) ÷ (Price − Variable cost)
Use it when: Use when price and variable cost per unit are known and stable.
It assumes: Price and variable cost per unit do not change with volume.
Break-even in revenue
Revenue = (Fixed costs + Target profit) ÷ Contribution margin ratio
Use it when: Use when the product mix, and therefore the average margin ratio, is stable.
It assumes: The sales mix stays the same as volume changes.
Assumptions built into the result
- Business: Price and variable cost per unit stay constant across the volume considered.
- Business: Costs split cleanly into fixed and variable.
Figures this calculator will never guess for you
- No industry margin, benchmark price or assumed cost ratio.
Limitations
- A single-period, linear model. It does not handle volume discounts, step costs or changing mix.
Source and version
- Standard or reference
- Cost-volume-profit analysis (OpenStax, Principles of Accounting Volume 2: Managerial Accounting, cost-volume-profit analysis.)
- Published source
- OpenStax — OpenStax (CC BY)
- Formula version
- Version 1
- Verification
- Reviewed against the cited source on
- How much weight the source carries
- Academic
- Applies to
- Currency
- Amounts stay in the currency you choose; no exchange rate is applied.
Cite this page
Free Calculator. (2026, September 15). Break-Even Point Calculator. https://freecalculator.tech/tools/break-even-point-calculator
"Break-Even Point Calculator." Free Calculator, 15 Sept. 2026, https://freecalculator.tech/tools/break-even-point-calculator.
Break-Even Point Calculator — Free Calculator, https://freecalculator.tech/tools/break-even-point-calculator
Related tools
Work out the hourly rate to charge a client so that target margin is met after overhead and non-billable time.
Find the true hourly cost of an employee once benefits, payroll cost and overhead are included.
Size a software application from its data and transaction functions before estimating effort or cost.
Estimate development effort, schedule and average team size for a software project of a known size.
Express cloud spend as a cost per customer, per transaction or per other business unit.
Set the rate used to apply manufacturing overhead to jobs for the coming period.