Break Even Calculator
Calculate your break-even point in units and sales with this free online break even calculator, or find the price you need to cover fixed costs.
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How to use Break Even Calculator
- 1Choose whether to find the units to sell or the price to charge
- 2Enter your fixed costs, the variable cost per unit and either the selling price or the units you expect to sell
- 3Add an optional target profit, then read the break-even point and contribution margin
Frequently asked questions
How do you calculate the break-even point?▾
Divide fixed costs by the contribution margin per unit, which is the price minus the variable cost per unit. With $10,000 of fixed costs, a $50 price and a $30 unit cost you break even at 500 units.
What is contribution margin?▾
It is the amount each sale leaves after paying its own variable costs, available to cover fixed costs and then become profit. The contribution margin ratio is that amount as a percentage of the price.
How do I include a target profit?▾
Add the profit you want to the fixed costs before dividing by the contribution margin. The result is the number of units you must sell to reach that profit.
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