Break-Even Calculator
The break-even point is the level of sales at which a business covers all its costs and makes neither a profit nor a loss. Every sale beyond it adds to profit.
Enter your figures below. Results update as you type.
Break-even point400 units$20,000.00 in sales
- Contribution per unit
- $30.00
- Contribution margin
- 60%
- Units for your target profit
- 567
- Sales for your target profit
- $28,333.33
- Sales
- Total costs
How the Break-Even Point calculation works
Break-even units = fixed costs / (price - variable cost per unit)
With $12,000 of monthly fixed costs, a $50 price and $20 of variable cost, each sale contributes $30. Break-even is 400 units, or $20,000 of sales. A $5,000 profit target takes 567 units.
Frequently asked questions
How do I calculate the break-even point?
Divide fixed costs by the contribution per unit, which is the price minus the variable cost. $12,000 divided by $30 is 400 units.
What is contribution margin?
The share of each sale left after its variable costs, available to cover fixed costs and profit. A $50 item with $20 of variable cost has a contribution of $30, or 60%.
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