CalcJuice
← All tools
Finance

Break-Even Calculator

Find the number of units you need to sell to cover fixed and variable costs.

Break-even point

Break-even units
1,000
Break-even revenue
$25,000.00
Contribution margin
$10.00

The break-even point is where a business stops losing money and starts making it — the sales volume at which total revenue equals total costs. Below it you're subsidizing each sale; above it, each sale adds profit.

Contribution margin drives it

Each unit sold contributes its price minus its variable cost toward covering fixed costs. Divide fixed costs by that contribution margin to get the number of units needed to break even. A higher price or lower variable cost lowers the break-even volume.

Frequently asked questions

What is the break-even point?

The number of units you must sell so revenue exactly covers fixed and variable costs — beyond it, each sale adds profit.

What is contribution margin?

The selling price minus the variable cost per unit — the amount each sale contributes toward covering fixed costs.