Break-even Calculator and Break-even Point
Calculate your break-even point from fixed costs, unit selling price excluding tax and unit variable cost. Get contribution margin, units to sell and required revenue.
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Break-even calculation
Enter your fixed costs, unit selling price excluding tax and unit variable cost.
Your break-even point
Contribution margin ratio
Advanced options
Average target
Average revenue target
Why use this tool?
This break-even calculator determines the sales volume and revenue needed to cover fixed costs, based on the contribution margin generated by each unit sold.
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Smart processing
Calculate and compare financial scenarios with clear indicators and explicit formulas.
Supported formats
Amounts, rates, terms and financial assumptions depending on the calculator.
Save time
Get a clean, ready-to-use result in seconds without installing software or configuring a complex workflow.
Break-even formulas
The calculation is based on the margin each unit generates before fixed costs are absorbed.
Unit contribution margin
Unit margin = Selling price − Unit variable cost
This margin first contributes to covering fixed costs.
Units to sell
Break-even units = Fixed costs / Unit margin
For indivisible products, round up to the next whole unit.
Break-even revenue
Break-even revenue = Fixed costs / Contribution margin ratio
This gives the revenue required to reach equilibrium.
This model assumes selling price and unit variable cost remain constant over the period.
See the detailed explanationContribution margin
Each sale absorbs fixed costs through its unit contribution margin.
- Selling price − variable cost
- A higher unit margin lowers break-even
Break-even threshold or break-even point?
The threshold expresses revenue or volume; the break-even point can also add a time dimension.
- Threshold: amount or volume
- Point: time dimension
Fonctionnement
How does this tool work?
Unit contribution margin equals selling price excluding tax minus unit variable cost.
Break-even units equal fixed costs divided by unit contribution margin; the operational target is rounded up to a whole unit.
Break-even revenue uses the contribution margin ratio, while advanced options turn the result into a monthly average target.
Use cases
Product launch
Estimate how many units must be sold before fixed costs are covered.
Sales forecasting
Turn your costs into a revenue and volume target.
Price change analysis
Measure how a selling-price change affects break-even.
Cost analysis
See how higher variable costs affect the required sales volume.
Guide
How to use this tool
- 1
Enter fixed costs
Enter costs that do not directly vary with units sold.
- 2
Enter the selling price
Use the unit price excluding tax.
- 3
Add unit variable cost
Enter the cost directly associated with one unit sold.
- 4
Analyze break-even
Review units, revenue and contribution margin.
Examples
Product sold for €50
Unit margin: €20; break-even: 500 units; revenue: €25,000.
Input
€10,000 fixed costs · €50 selling price · €30 variable costTips and best practices
- Use amounts excluding tax so VAT does not distort economic performance.
- Include all relevant fixed costs for the reference period.
- A multi-product business may require assumptions about sales mix.
- Break-even and ROI are complementary indicators.
Frequently asked questions
What is the break-even formula?
In units, divide fixed costs by unit contribution margin. In revenue, divide fixed costs by the contribution margin ratio.
What is contribution margin?
It is selling price minus the variable cost directly associated with one unit.
What is the difference between break-even threshold and point?
The threshold is the activity level required to cover costs; the point often expresses when that threshold is reached.
Why round units up?
If units are indivisible, the next whole unit is required to actually cover costs.
What if variable cost exceeds selling price?
Each sale then destroys margin, so no positive break-even point can be reached under those assumptions.
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