Recent Calculations
How to use
Enter your fixed costs (e.g., rent, equipment), variable cost per unit (materials, labor), and selling price per unit. The calculator instantly shows:
- Break‑even units: Number of units you must sell to cover all costs.
- Break‑even revenue: Total sales dollars needed to break even.
- Contribution margin: Amount each unit contributes to covering fixed costs and profit.
- Contribution margin ratio: Percentage of each sales dollar available to cover fixed costs.
Use this tool for pricing decisions, evaluating new ventures, or setting sales targets.
Break‑even formulas
Contribution Margin = Selling Price − Variable Cost per Unit
Break‑even (units) = Fixed Costs ÷ Contribution Margin per Unit
Break‑even (revenue) = Fixed Costs ÷ Contribution Margin Ratio
Contribution Margin Ratio = (Selling Price − Variable Cost) ÷ Selling Price
These formulas assume linear cost and revenue functions. Results are estimates; actual business conditions may vary.
Frequently asked questions
The break‑even point is the level of sales at which total revenue equals total costs, resulting in zero profit or loss. It's a critical metric for business viability.
Fixed costs remain constant regardless of production volume (e.g., rent). Variable costs change directly with the number of units produced (e.g., materials).
Yes. For services, "units" can be billable hours, customers, or subscriptions. Adjust your variable cost per unit accordingly.
Contribution margin shows how much each unit helps cover fixed costs. A higher contribution margin means you reach break‑even faster.