Break-Even Calculator

Calculate the exact number of units and revenue required to hit break-even.

Inputs

Break-Even Units
166.7
Break-Even Revenue
$16,666.67

Frequently Asked Questions

How is break-even calculated?

Break-even units equals Total Fixed Costs divided by (Price Per Unit minus Variable Cost Per Unit). The denominator is known as the Contribution Margin.

What is a fixed cost?

Costs that don't change regardless of how many units you sell. Example: Rent, Insurance, Software Subscriptions.

What is a variable cost?

Costs that increase exactly with each unit sold. Example: Materials, Shipping, Payment Processing Fees.

Understanding the Break-Even Point

Your break-even point is the exact moment your total revenue perfectly equals your total costs. Every unit sold past this point generates pure profit (minus taxes and variable costs). Pricing too low, or carrying too much fixed overhead, extends your break-even horizon dangerously far into the future.

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