Break even calculator
Enter fixed costs, price and variable cost per unit to see the sales you need to cover everything.
Results
Break even units
0
Units to sell so that sales cover all costs. Rounded up to a whole unit.
- Break even units
- 0
- Break even revenue
- 0.00
- Contribution margin per unit
- 0.00
- Contribution margin ratio
- 0.00%
- Units for the target profit
- -
- Revenue for the target profit
- -
- Margin of safety (units)
- -
- Margin of safety (%)
- -
- Profit at the expected units
- -
| Units | Revenue | Total cost |
|---|
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For information only, not financial, tax or legal advice.
Last updated 2026-10-30. Method checked 2026-10-30. Methodology
Break even is the point where sales exactly cover costs, so the business makes neither a profit nor a loss. It tells you how many customers, orders or hours you need in a period before anything is earned. Enter your fixed costs for the period (rent, salaries, software, insurance), the price you charge per unit, and the variable cost per unit (materials, packaging, payment fees, delivery). The calculator gives the break even point in units and in revenue, the contribution per unit, the contribution margin ratio, and the sales needed to reach a profit target you set. Add the units you expect to sell to see your margin of safety and profit. It suits small shops, cafes, makers, service businesses and business plans. It assumes one product or one average product.
How to use the Break Even Calculator
- Enter your fixed costs for the period and pick the period. Include everything you pay even if you sell nothing.
- Enter the selling price per unit, before sales tax.
- Enter the variable cost per unit: everything that rises with each sale. Tip: Include payment processing fees and delivery if you pay them per order.
- Optionally enter a target profit and the units you expect to sell. Leave them at 0 to skip them.
- Read the break even units and revenue, then the extra lines for your target and expected sales.
Worked example
A small bakery that sells one average product. All figures are USD, for one month.
| Input | Value |
|---|---|
| Fixed costs a month | USD 12,000.00 |
| Selling price per unit | USD 50.00 |
| Variable cost per unit | USD 30.00 |
| Target profit a month | USD 6,000.00 |
| Expected units a month | 800 |
Contribution per unit = 50.00 - 30.00 = USD 20.00 Contribution margin ratio = 20.00 / 50.00 = 40.00% Break even units = 12,000 / 20 = 600 units Break even revenue = 600 x 50 = USD 30,000.00 Units for a USD 6,000 profit = (12,000 + 6,000) / 20 = 900 units, revenue USD 45,000.00 Margin of safety = 800 - 600 = 200 units, which is 200 / 800 = 25.00% Profit at 800 units = (800 x 20) - 12,000 = USD 4,000.00
- Break even units
- 600 units
- Break even revenue
- USD 30,000.00
- Contribution margin per unit
- USD 20.00
- Contribution margin ratio
- 40.00%
- Units for the target profit
- 900 units
- Revenue for the target profit
- USD 45,000.00
- Margin of safety (units)
- 200 units
- Margin of safety (%)
- 25.00%
- Profit at the expected units
- USD 4,000.00
Break even units are rounded up, because selling 599 units would still leave a loss. Break even revenue uses the exact units before rounding. With 10,000 of fixed costs, a price of 33 and a variable cost of 18, the exact figure is 666.67 units, so the page shows 667 units (666.67 rounded up) and USD 22,000.00 of revenue.
How break even is calculated
Contribution per unit = price - variable cost per unit
Contribution margin ratio = contribution per unit / price
Break even units = fixed costs / contribution per unit
Break even revenue = break even units x price
Units for a target profit = (fixed costs + target profit) / contribution per unit
Margin of safety = expected units - break even units
Profit at a given volume = (units x contribution per unit) - fixed costs
Every sale first pays its own variable cost. What is left is the contribution, and the contribution goes toward the fixed costs. Break even is reached when the total contribution equals the fixed costs. After that, each further sale adds its contribution to profit.
Break even units are rounded up to the next whole unit, because you cannot sell a fraction of a unit and selling one fewer leaves a loss. When the exact figure is not whole, the page shows both, for example 667 units (666.67 rounded up). Break even revenue is worked out from the exact units, so 666.67 units at 33 gives 22,000.00, and it is shown to the currency's decimal places. The units for a target profit use the same rounding.
The margin of safety shows how far expected sales sit above break even. It is the expected units minus the exact break even units, and the percentage divides that gap by the expected units. A negative figure means the expected volume is below break even and makes a loss.
If the price is equal to or below the variable cost, each sale adds nothing or loses money, so no break even point exists. The tool says so and shows no figures. If fixed costs are 0, you break even on the first sale. The table lists revenue and total cost at 10 steps up to twice the break even units, and the two columns meet at break even. It stands in for a chart and can be copied as CSV.
The method assumes that the price and the variable cost per unit stay the same at every volume, which is a fair approximation for one product over one period.
Frequently asked questions
What is the break even point?
It is the level of sales at which total revenue equals total costs. Below it a business loses money, and above it a business makes a profit. It can be stated as a number of units or as an amount of revenue. For a service business, a unit can be an hour, a day or a job.
What counts as a fixed cost and what counts as a variable cost?
Fixed costs stay the same whether you sell 10 units or 1,000, such as rent, salaries, insurance, software subscriptions and loan payments. Variable costs rise with each sale, such as materials, packaging, delivery, card fees and sales commission. Some costs are mixed, like electricity. Put the steady part in fixed costs and estimate the rest per unit.
How can a service business use this calculator?
Make the unit an hour or a job. The price is your hourly or job rate, the variable cost is anything you pay for each job such as travel or subcontractors, and fixed costs are your overheads for the period. The result shows how many billable hours or jobs cover the period before any profit is earned.
What is the contribution margin?
It is the amount each sale adds toward fixed costs after its own variable cost is paid. If a unit sells for 50 and costs 30 to make and deliver, each sale contributes 20. Once enough sales have contributed the full fixed costs, every further sale adds 20 of profit. The ratio shows that amount as a share of the price.
What if I sell several products at different prices?
Use a weighted average. If 70% of sales are product A with a contribution of 20 and 30% are product B with a contribution of 10, the average contribution is 17 a sale. Enter the average price and average variable cost that give that contribution, and the result is the total number of sales needed across both products.
Guides for this tool
Sources
- Investopedia: break-even analysis checked 2026-10-30
- U.S. Small Business Administration: calculate your startup costs checked 2026-10-30