Quick answer
Break-even units = fixed costs ÷ (price per unit − variable cost per unit). With $10,000 of fixed costs, a $25 price and $15 of variable cost, you break even at 1,000 units, or $25,000 of revenue.
Enter fixed costs, price and variable cost per unit. The calculator returns break-even units, revenue and the contribution margin.
Related tools: Contribution Margin Calculator: Per-unit contribution and contribution margin ratio. Markup Calculator: Selling price from cost and markup percentage. Margin Calculator: Profit, gross margin and markup from cost and revenue.
How to use the Break-Even Calculator
- Enter fixed costs ($) (0 or more).
- Enter price per unit ($) (above 0).
- Enter variable cost per unit ($) (0 or more).
- Press Calculate to see the result, and use Reset to start again.
| Input | What to enter | Allowed values |
|---|---|---|
| Fixed costs | A number, in $ | ≥ 0 |
| Price per unit | A number, in $ | > 0 |
| Variable cost per unit | A number, in $ | ≥ 0 |
Formula and method
Formula
break-even units = fixed ÷ (price − variable cost)
IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice.
Contribution margin per unit covers fixed costs; units are rounded up to whole units.
Worked examples
These examples are verified: each one is an automated test case that the live calculator must reproduce exactly.
Example 1
Inputs: Fixed costs = 10000; Price per unit = 25; Variable cost per unit = 15.
| Result | Value |
|---|---|
| Break-even units | 1,000 |
| Break-even revenue | $25,000.00 |
| Contribution margin per unit | $10.00 |
Example 2
Inputs: Fixed costs = 5000; Price per unit = 30; Variable cost per unit = 12.
| Result | Value |
|---|---|
| Break-even units | 278 |
| Break-even revenue | $8,340.00 |
| Contribution margin per unit | $18.00 |
The first line is the headline result (break-even units). Below it the break-Even Calculator lists break-even revenue and contribution margin per unit, which describe the same case from other angles. IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice.
Contribution margin
Each unit contributes $25 − $15 = $10 towards fixed costs. It takes 10,000 ÷ 10 = 1,000 units to cover them, and every unit after that is profit. Selling 1,500 units yields $5,000 of profit.
When the model fails
The price must exceed variable cost, or there is no break-even. The model assumes a single product, constant price and linear costs; discounts, step-fixed costs and mix changes will move the point. Use it as a planning check and re-run with pessimistic prices.
How the result changes with fixed costs
Holding every other input at the first worked example, this table changes only fixed costs. It shows how sensitive the answer is to that one value; each row was produced by running this calculator.
| Fixed costs | Break-even units | Break-even revenue | Contribution margin per unit |
|---|---|---|---|
| 5000 | 500 | $12,500.00 | $10.00 |
| 10000 | 1,000 | $25,000.00 | $10.00 |
| 20000 | 2,000 | $50,000.00 | $10.00 |
| 40000 | 4,000 | $100,000.00 | $10.00 |
What happens with invalid input
These messages are produced by the calculator itself, so you know what to fix.
- Price per unit: entering "10" shows "Price must be higher than the variable cost per unit." beside that field and no result.
Choosing between the Break-Even Calculator and similar calculators
Each row shows what a related calculator on this site asks for and what it returns, so you can pick the one that matches your question.
| Calculator | You enter | It returns |
|---|---|---|
| [Contribution Margin Calculator](/business/contribution-margin-calculator/) | selling price per unit and variable cost per unit | Contribution per unit |
| [Markup Calculator](/business/markup-calculator/) | cost and markup | Selling price |
| [Margin Calculator](/business/margin-calculator/) | cost and revenue | Gross margin |
| [ROI Calculator](/business/roi-calculator/) | amount invested and final value | ROI |
| [CPM Calculator](/business/cpm-calculator/) | ad spend and impressions | CPM |
Background: business metrics
Business ratios depend on exactly which costs and revenues you include, so read each page's definition. Two common checks: break-even units = fixed costs ÷ (price − variable cost per unit), so $50,000 of fixed costs with a $10 price and $5 variable cost breaks even at 10,000 units; and net profit margin = net profit ÷ revenue, so $20,000 profit on $100,000 revenue is 20%.
Return on investment ignores time: 20% over five years is far less impressive than 20% in one, so compare returns over the same period.
Assumptions and limitations
- Price must exceed variable cost
If a required value is empty, not a number, or outside its allowed range, the form marks that field with a message and shows no result instead of a misleading number. The automated checks deliberately try invalid entries for price per unit to confirm this.
Frequently asked questions
How do I lower the break-even point?
Raise the price, cut variable costs or reduce fixed costs.
What is margin of safety?
The gap between expected sales and break-even sales.
Does it include taxes?
No. Taxes and other costs outside price and unit costs are not modelled.
What does the Break-Even Calculator calculate?
Units and revenue needed to cover fixed and variable costs. It returns Break-even units, Break-even revenue and Contribution margin per unit.
What formula does the Break-Even Calculator use?
break-even units = fixed ÷ (price − variable cost). Contribution margin per unit covers fixed costs; units are rounded up to whole units.
What do I need to enter in the break-Even Calculator?
You enter Fixed costs ($), Price per unit ($) and Variable cost per unit ($).
How is the result rounded or limited?
IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice. Price must exceed variable cost.
What is an example of a break-Even result?
With fixed costs 10000, price per unit 25 and variable cost per unit 15, the break-even units is 1,000.
Related calculators
- Contribution Margin Calculator — Per-unit contribution and contribution margin ratio.
- Markup Calculator — Selling price from cost and markup percentage.
- Margin Calculator — Profit, gross margin and markup from cost and revenue.
- ROI Calculator — Return on investment, with optional annualized return.
- CPM Calculator — Cost per thousand impressions.
- ROAS Calculator — Return on ad spend.
- CTR Calculator — Click-through rate.
Sources
- Standard time-value-of-money relations (e.g. Brealey, Myers & Allen, Principles of Corporate Finance)
Content last reviewed 2026-11-04. Formulas and worked examples are checked by automated tests against independently computed values.