Break-Even Point Calculator
The problem: Entrepreneurs and finance teams know their costs but can't quickly answer 'how many units must we sell before we stop losing money?' without a spreadsheet.
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Break-Even Point Calculator: the complete guide
A break-even calculator answers the essential business question: how many units must we sell — and at what total revenue — before our revenue covers our costs and we stop losing money? The break-even point (BEP) is where total revenue equals total costs: zero profit, zero loss. Every unit sold past the BEP contributes pure profit at the contribution margin rate. This tool calculates BEP from fixed costs (rent, salaries, software subscriptions), variable costs per unit (materials, packaging, commissions), and selling price per unit. It also computes the contribution margin per unit and ratio, runs an optional target-profit calculation, and generates a 7-scenario profit and loss table.
Contribution margin: the metric that connects costs to BEP
Contribution margin per unit (CM) is selling price minus variable cost per unit: CM = price − variable cost. It is the amount each unit 'contributes' toward covering fixed costs and then generating profit. Once fixed costs are fully covered, each additional unit generates CM as pure profit. Break-even units = fixed costs ÷ CM. A higher CM means fewer units needed to break even, which is why pricing strategy and variable cost management are the two levers with the most impact on BEP. The contribution margin ratio (CM ratio = CM ÷ price × 100) expresses this as a percentage of revenue — a 60% CM ratio means 60 cents of every dollar goes toward fixed costs and profit, and 40 cents covers variable costs.
Target profit planning
The break-even formula extends naturally to target profit: to achieve a desired profit P, the required units = (fixed costs + P) ÷ CM. This is the most practical use of the formula for business planning — not 'when do we break even?' but 'how many units do we need to sell to hit our $50,000 quarterly profit target?' The scenario table in this tool generates the profit at 25%, 50%, 75%, 100%, 125%, 150% and 200% of the break-even volume, showing exactly how losses shrink toward BEP and how profit grows past it.
Step by step: how to use Break-Even
- 1
Enter your total fixed costs for the period (monthly, quarterly or annually).
- 2
Enter your variable cost per unit — what it costs to produce or deliver one additional unit.
- 3
Enter your selling price per unit — what one unit sells for.
- 4
Optionally, enter a target profit to see how many units you need to sell to achieve it.
- 5
Review the contribution margin, break-even units and break-even revenue in the result cards.
- 6
Read the scenario table to understand profitability at different sales volumes.
Security & privacy
All financial calculations run locally in your browser with JavaScript arithmetic. Your cost structures, margins and revenue targets are commercially sensitive — this tool ensures they never leave your device.