Break Even Calculator
Find the sales level to break even.
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Contribution Margin (per unit) = Price - Variable Cost
Break-even Units = Fixed Costs / Contribution Margin
Break-even Revenue = Break-even Units * Price
Example:
Fixed Costs $10,000; Variable $20; Price $30
CM = $10 -> Break-even Units = 10,000 / 10 = 1,000
Break-even Revenue = 1,000 * $30 = $30,000
What is the break-even point?
It is the sales level where total revenue equals total costs. No profit, no loss. Units = Fixed Costs / (Price − Variable Cost).
What if my contribution margin is negative?
If Price <= Variable Cost, contribution margin is non-positive. You cannot break even without raising price or lowering variable costs.
Do fixed costs include interest or taxes?
Fixed costs are ongoing overhead independent of units (e.g., rent, salaries). For simplicity, interest/taxes are typically excluded from the basic break-even model.
Can I use different currencies?
Yes. The math is the same regardless of currency. Ensure all inputs use the same currency units.
What is break-even point?
The sales level where total revenue equals total costs (no profit, no loss). Units = Fixed Costs / (Price − Variable Cost).
📐 Formula
Contribution Margin (per unit) = Price - Variable Cost
Break-even Units = Fixed Costs / Contribution Margin
Break-even Revenue = Break-even Units * Price
📝 Example Calculation
Example:
Fixed Costs $10,000; Variable $20; Price $30
CM = $10 -> Break-even Units = 10,000 / 10 = 1,000
Break-even Revenue = 1,000 * $30 = $30,000
❓ Frequently Asked Questions
What is the break-even point?▼
It is the sales level where total revenue equals total costs. No profit, no loss. Units = Fixed Costs / (Price − Variable Cost).
What if my contribution margin is negative?▼
If Price <= Variable Cost, contribution margin is non-positive. You cannot break even without raising price or lowering variable costs.
Do fixed costs include interest or taxes?▼
Fixed costs are ongoing overhead independent of units (e.g., rent, salaries). For simplicity, interest/taxes are typically excluded from the basic break-even model.
Can I use different currencies?▼
Yes. The math is the same regardless of currency. Ensure all inputs use the same currency units.
What is break-even point?▼
The sales level where total revenue equals total costs (no profit, no loss). Units = Fixed Costs / (Price − Variable Cost).