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Break-even calculator

Estimate the units and revenue needed to cover business costs.

Enter your values, review the period and select Calculate. Calculations run in your browser; your financial data is neither sent nor saved. The page downloads software resources.

Educational estimates assume constant rates and exclude taxes, fees, inflation and insurance. They are not an offer or financial advice. Loans use a nominal annual rate divided by twelve; this is not the total cost of credit. The savings calculator converts an effective annual rate to the chosen frequency. Contributions occur every compounding period.

Amounts from 0 to 1,000,000,000, up to two decimal places. Rates from 0 to 100%, up to six decimal places. Use a decimal point or comma without thousands separators. Use the same currency for all amounts.

Calculation inputs

Ready to calculate

What this tool does

Estimate the units and revenue needed to cover fixed costs with a positive contribution per unit.

Variables and assumptions

Unit contribution equals price minus variable cost. Fixed costs divided by this contribution give theoretical break-even units. Contribution must be positive; if it is zero or negative, selling more does not cover positive fixed costs in this model.

How to interpret the result

Fixed costs 1000, price 50 and variable cost 30 give contribution 20: 50 units and revenue 2500 cover costs. Round up units for indivisible goods. Revenue is not profit; the model assumes constant prices and costs and that all units can be sold.

Educational estimate; not personalized financial advice or a commercial offer.

How to use it

  1. Enter fixed costs, unit price and variable cost per unit.
  2. Calculate the contribution and break-even point.
  3. Distinguish theoretical units from the required whole units.

Verifiable example

Input
Fixed costs 1000; unit price 50; variable cost 30.
Expected result
Contribution 20; break-even 50 units; revenue 2500.

Limitations to review

  • If price minus variable cost is zero or negative, this model has no finite break-even point.
  • Assumes constant prices and costs and that all units are sold. It does not model taxes, inventory or real demand.

Read the full tutorial

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Browse all guides. Local processing: the page downloads HTTP resources but does not send files or input data to a server for these functions.