Break-Even Calculator
Estimate contribution margin, break-even units and break-even revenue.
Estimate break-even units and revenue
Use fixed cost, selling price and variable cost per unit to calculate a simple accounting break-even point.
Break-even formula used
Contribution per unit equals selling price minus variable cost per unit. Break-even units equal fixed costs divided by that contribution. The tool rounds units up because a fractional unit may not be sellable.
How to use the result
- Enter fixed costs for the period being analyzed.
- Use the average or expected selling price per unit.
- Enter variable cost associated with each unit.
- Review the contribution, unit threshold and corresponding revenue.
Why price must exceed variable cost
If each additional unit loses money before fixed costs, selling more units cannot absorb those fixed costs. The calculator therefore marks break-even as not reachable when contribution is zero or negative.
Real businesses can have multiple products
A single-product model is an approximation when products have different prices and margins. Multi-product break-even analysis usually requires a sales-mix assumption and weighted contribution margin.