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Break-Even Calculator

Estimate the number of units and sales revenue needed to cover your fixed and variable costs.

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HOW IT WORKS

How the Break-Even Calculator works

1

Enter fixed costs

Add costs that do not change with each unit sold for the period you are analysing.

2

Add unit price and variable cost

Enter the selling price and the cost that changes for each unit.

3

See the break-even point

The calculator divides fixed costs by contribution per unit and rounds up to a whole unit.

COMMON QUESTIONS

Frequently asked questions

What is a break-even point?

It is the level of sales where total contribution covers fixed costs, producing neither profit nor loss before other unmodelled items.

What is contribution per unit?

It is selling price per unit minus variable cost per unit.

Why does the calculator round units up?

If part of a unit cannot be sold, the next whole unit is needed to fully cover the calculated fixed costs.

What if variable cost is higher than selling price?

There is no positive contribution per unit, so increasing sales alone will not produce a break-even point under those inputs.