About the break-even calculator
The break-even point is where revenue equals total costs. Every unit sold contributes its price minus its variable cost toward fixed costs; once those are covered, the rest is profit.
How to use this calculator
- Enter fixed costs for the period.
- Enter the price per unit.
- Enter the variable cost per unit.
Worked examples
- Contribution = $20 per unit
- 12,000 ÷ 20 = 600
600 units, or $30,000 in sales.
Measurement guidance
Fixed vs. variable
Fixed costs (rent, salaries, insurance) don’t change with volume. Variable costs (materials, shipping, payment fees) rise with each unit.
Frequently asked questions
What if price equals variable cost?
Each sale contributes nothing, so you can never break even.
Can I use it for services?
Yes — treat each hour or job as a unit.