How is the break-even point calculated?

Break-even units = fixed costs ÷ (price per unit − variable cost per unit). The denominator is the contribution margin — how much each sale contributes toward covering fixed costs after variable costs.

What counts as a fixed cost vs. a variable cost?

Fixed costs stay the same regardless of sales volume, like rent, salaries, or software subscriptions. Variable costs scale with each unit sold, like materials, packaging, or a per-unit shipping fee.

What does it mean if the price per unit is lower than the variable cost?

It means you lose money on every unit sold, so no sales volume can ever reach break-even — the calculator flags this case directly instead of showing a misleading number.

Is my business data sent anywhere?

No. All calculations run locally in your browser with JavaScript — nothing is transmitted or stored.

BREAK-EVEN CALCULATOR

Find the sales volume that covers your fixed costs. Nothing leaves your browser.

Fixed costs

Price per unit

Variable cost per unit

Break-even units334

Break-even revenue8,333.33

Contribution margin15.00

How to use the break-even calculator

1
Enter your total fixed costs (rent, salaries, and other costs that don't change with sales volume).
2
Enter the price you charge per unit.
3
Enter the variable cost to produce or deliver one unit.
4
Read the break-even point in units and in revenue.

Questions

How is the break-even point calculated?: Break-even units = fixed costs ÷ (price per unit − variable cost per unit). The denominator is the contribution margin — how much each sale contributes toward covering fixed costs after variable costs.
What counts as a fixed cost vs. a variable cost?: Fixed costs stay the same regardless of sales volume, like rent, salaries, or software subscriptions. Variable costs scale with each unit sold, like materials, packaging, or a per-unit shipping fee.
What does it mean if the price per unit is lower than the variable cost?: It means you lose money on every unit sold, so no sales volume can ever reach break-even — the calculator flags this case directly instead of showing a misleading number.
Is my business data sent anywhere?: No. All calculations run locally in your browser with JavaScript — nothing is transmitted or stored.