Finance calculator
Break-Even Calculator
Use this break-even calculator to estimate how many units must be sold before contribution margin covers fixed costs. It is a simple planning model, not a sales forecast.
Formula
- Contribution margin per unit = price per unit - variable cost per unit
- Break-even units = fixed costs / contribution margin per unit
- Break-even revenue = break-even units x price per unit
Example calculation
With $25,000 in fixed costs, a $75 unit price, and $30 variable cost per unit, contribution margin is $45. Break-even volume is about 556 units and break-even revenue is about $41,667.
FAQ
What if variable cost is higher than price?
Then each sale loses money before fixed costs. The calculator will flag that break-even cannot be reached with those inputs.
Does break-even mean the business is profitable?
Break-even means estimated revenue covers the modeled fixed and variable costs. It does not include every possible expense or cash flow timing issue.
Should fixed costs be monthly or annual?
Use a consistent period. If fixed costs are monthly, the break-even output is for that month. If fixed costs are annual, the output is annual.
Educational disclaimer
MoneyHackWise calculators are for educational purposes only and do not provide financial, investment, tax, legal, accounting, lending, or business advice. Results are estimates based on the inputs and assumptions shown.