Break-Even Calculator
Find how many units you need to sell to cover fixed costs, how much revenue that requires, and how sales volume changes when you target extra profit.
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Break-even units
444.44
Break-even revenue
$20,000.00
Contribution margin
$27.00
Units for target profit
629.63
Your contribution margin ratio is 60.00%, which means that share of each sale goes toward covering fixed costs and profit.
How to Use
- Enter total fixed costs for the period you want to analyze.
- Add your selling price per unit and variable cost per unit.
- Optionally enter a target profit to see the units required beyond break-even.
- Review break-even units, break-even revenue, and contribution margin.
Frequently Asked Questions
What is break-even?
Break-even is the point where total revenue equals total costs, so profit is zero.
What is contribution margin?
Contribution margin is selling price minus variable cost per unit. It shows how much each sale contributes toward fixed costs and profit.
Why can't I break even if price is below variable cost?
Because each sale would lose money before fixed costs are even covered. In that case, additional volume makes the loss worse.
Can this work for services too?
Yes. Treat each billable job, hour, or contract as a unit if that matches how you price your service.