Break-Even Calculator
Determine the sales volume needed to cover your costs and start making a profit.
Cost Inputs
$
$
$
Costs that change with production volume, like materials, packaging, and direct labor.
Contribution Margin
$60per unit
Break-Even Units
84
Total units sold to net $0
Break-Even Revenue
$8,400
Gross sales required
Break-Even Analysis
The Goal
To cover your total fixed costs of $5,000, you need to sell 84 units.
Unit Economics
- Each unit sold earns $100.
- Variable costs take $40 away instantly.
- You keep $60 to pay off your overhead.
Profit Threshold
- At unit #84, you cover all costs.
- Every unit sold after that adds $60 directly to profit.
What is a Break-Even Calculator?
A break-even calculator is a financial tool that shows when total revenue equals total costs, meaning a business makes neither a profit nor a loss. It helps you estimate how many units you need to sell, or how much revenue you must earn, to cover all expenses.
This calculator is useful for small businesses, startups, and product pricing analysis.
How to Use the Break-Even Calculator
- Enter Fixed Costs: Add costs that do not change with production volume, such as rent, salaries, and insurance.
- Enter Price Per Unit: Enter the selling price of one unit of your product or service.
- Enter Variable Cost Per Unit: Add costs that increase with each unit produced, such as materials or direct labor.
- Review the Results: The calculator will instantly show your break-even units (sales volume required) and break-even revenue (total sales needed to cover all costs).