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Break-Even Calculator

Calculate how many units you need to sell to cover your costs. Find your break-even point in units and revenue, plus the volume needed for a target profit.


Enter Values

Rent, salaries, insurance, etc.
Materials, labor per unit, etc.
Optional — leave at 0 for break-even only
Results update as you type.

How It Works

Break-Even Point is where total revenue equals total costs (zero profit, zero loss):

Break-Even Units = Fixed Costs ÷ (Selling Price − Variable Cost per Unit)

Contribution Margin is the amount each unit contributes toward covering fixed costs:

Contribution Margin = Selling Price − Variable Cost per Unit

Contribution Margin Ratio expresses the margin as a percentage of the selling price:

Margin Ratio = (Contribution Margin ÷ Selling Price) × 100


Key Concepts

Fixed Costs

  • Stay the same regardless of production volume
  • Examples: rent, insurance, salaries, loan payments
  • Must be covered before any profit is earned

Variable Costs

  • Change in proportion to production volume
  • Examples: raw materials, packaging, shipping
  • Directly tied to each unit produced or sold

Embed This Util

You can embed this util on your own site as a widget. Adding ?embed=1 to the URL loads a compact version with just the tool itself; no header, menu, or documentation. Paste this snippet into your HTML:


    

Copy snippet Adjust the height to taste.



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