Find out how many units you need to sell, and how much revenue you need, to cover your fixed and variable costs. You can also plan for two products, work out the sales needed for a profit target, and see how a price change moves your break-even point.
Basic Break-Even Analysis
Calculate the minimum units you need to sell to cover your costs.
Multi-Product Break-Even Analysis
Calculate break-even point with multiple products and sales mix.
Product A
Product B
Advanced Break-Even Scenario Analysis
Compare multiple scenarios with target profit analysis.
What this break-even calculator does
- Basic: break-even units and revenue from fixed costs, price per unit and variable cost per unit, plus the contribution margin and its ratio.
- Intermediate: break-even for two products using their sales mix (the percentage split of units sold).
- Advanced: break-even units, units for a target profit, current profit and margin of safety, with a table of price scenarios.
The formulas
| Measure | Formula |
|---|---|
| Contribution margin per unit | price − variable cost |
| Break-even units | fixed costs ÷ contribution margin (rounded up) |
| Break-even revenue | break-even units × price |
| Units for a target profit | (fixed costs + target profit) ÷ contribution margin |
| Margin of safety | (actual units − break-even units) ÷ actual units |
Worked example: with fixed costs of $10,000, a price of $50 and a variable cost of $30, each unit contributes $20, so you break even at 500 units ($25,000 of revenue, a 40% contribution margin ratio). To earn $5,000 profit you need 750 units. At 800 units sold your current profit is $6,000 and your margin of safety is 37.5%.
For two products, the calculator weights each product’s contribution margin by its sales mix. A 60/40 mix of a $50 product (variable cost $30) and a $100 product (variable cost $60) with $10,000 fixed costs breaks even at 358 units in total, which is 215 of the first and 144 of the second.
Things to keep in mind
Price must be greater than variable cost, otherwise each sale loses money and there is no break-even point. Fixed costs are assumed to stay constant and price and variable cost are assumed to be the same for every unit. These results are estimates for general information only and are not financial, tax or legal advice. Check important figures with a qualified professional.
Frequently asked questions
What counts as a fixed cost?
A cost that does not change with the number of units sold, such as rent, salaries or software subscriptions.
What counts as a variable cost?
A cost that rises with each unit, such as materials, packaging or per-order fees.
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