Break-Even Revenue Calculator
Calculate Break-Even Revenue step by step: Break-even revenue = fixed costs ÷ contribution margin ratio.
In short
Formula: Break-even revenue = fixed costs ÷ contribution margin ratio.
What this calculator does
Calculate Break-Even Revenue step by step: Break-even revenue = fixed costs ÷ contribution margin ratio. Worked example, questions and limitations included.
Use it to turn Currency (symbol only, never converted), Fixed costs for the period, Contribution margin ratio 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 accounting & costing calculation.
Inputs and what they mean
- Currency (symbol only, never converted)
- — choice value.
- Fixed costs for the period
- — number value.
- Contribution margin ratio
- — number value.
How to use it
- Enter each value in the unit shown next to the box (use the unit converter first if your numbers are in other units).
- Check the breakdown to see every intermediate step.
- Read the limitations before relying on the result.
Formula
CVP break-even in sales dollars (OpenStax Principles of Managerial Accounting).
Useful for multi-product businesses where units are not comparable.
Get the ratio from the contribution margin ratio calculator.
Break-even revenue = fixed costs ÷ contribution margin ratio.
Inputs used: Currency (symbol only, never converted), Fixed costs for the period, Contribution margin ratio.
Worked example
Fixed costs of $60,000
- 60,000 ÷ 0.40 = $150,000.
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
- Constant sales mix and ratio assumed.
- Fixed costs assumed fixed across the range.
- Results are educational estimates built only from the figures you enter. They are not personalised investment, tax, legal or accounting advice. Rates, growth and discount assumptions are always yours to choose.
- The result depends on the values you enter for this break-even revenue calculator; it does not supply missing rates, rules, prices, dates, or assumptions for you.
Common questions
Where do I get break-even units?
Use the break-even point calculator, which divides fixed costs by contribution per unit. Check the formula, example, and limitations on this page before using the result for a real accounting & costing decision.
Does it include a profit target?
No. For a profit goal use the target profit calculator.
Why must the ratio be above zero?
If each sale contributes nothing, no amount of revenue covers fixed costs. Check the formula, example, and limitations on this page before using the result for a real accounting & costing decision.
How do I use the Break-Even Revenue Calculator?
Enter the required values for Currency (symbol only, never converted), Fixed costs for the period, Contribution margin ratio. 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 Revenue Calculator use?
Break-even revenue = fixed costs ÷ contribution margin ratio. 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.
Can the Break-Even Revenue Calculator be used for exact decisions?
Use it as a calculation aid, not as a substitute for checking the underlying rule, contract, policy, or professional advice that applies to your situation. When a result depends on local rules, personal details, prices, or dates, enter those values yourself and confirm them before acting.
Related tools
Calculate COGS step by step: COGS = beginning inventory + purchases − ending inventory.
Calculate Gross Profit step by step: Gross profit = net revenue − cost of goods sold.
Calculate Gross Margin step by step: Gross margin % = (net revenue − COGS) ÷ net revenue × 100.
Calculate Contribution Margin Ratio step by step: Contribution margin ratio = (sales − variable costs) ÷ sales × 100.
Calculate Target Profit step by step: Target units = (fixed costs + target profit) ÷ (price − variable cost per unit), rounded up to a whole unit.
Calculate Margin of Safety step by step: Margin of safety % = (actual sales − break-even sales) ÷ actual sales × 100.