Determine when your business will become profitable with our free online Break-Even Calculator. Analyze your fixed costs, variable costs, and pricing to make informed financial decisions.
This business needs to sell 250 units to cover all costs and start making a profit.
Fill in your business details below to calculate your break-even point, margin of safety, and potential profits.
Number of units you need to sell to cover all costs
0
Total revenue needed to cover all costs
$0
Amount each unit contributes to covering fixed costs
$0 (0%)
Hover over the chart for detailed values
Enter your business details in the form to see when you'll start making a profit and visualize your financial outlook.
Understand the methodology behind our calculator and how to interpret your results for better business decisions.
Input your fixed costs (rent, salaries) and variable costs per unit (materials, labor). These form the foundation of your break-even analysis.
Specify your selling price per unit. This determines how much revenue each sale generates toward covering your costs.
Our calculator determines how many units you need to sell to cover all costs (break-even point) and starts showing profit beyond that.
See how much each unit sold contributes to covering fixed costs after variable costs are paid (Price - Variable Costs).
Optionally enter expected sales to see projected profits. This helps validate if your business model is sustainable.
Our interactive chart shows the relationship between costs, revenue, and profit at different sales volumes.
The break-even point is calculated using:
Break-Even Point (units) = Fixed Costs ÷ (Price per Unit - Variable Cost per Unit)
Where:
• Fixed Costs = Total recurring business expenses
• Price per Unit = Selling price of one item
• Variable Cost per Unit = Cost to produce one item
Learn more about break-even analysis and how to use it effectively for your business planning.
A comprehensive guide to break-even analysis, why it's important for your business, and how to perform one correctly.
Read ArticleHow to use break-even analysis to set optimal prices that cover costs while remaining competitive in your market.
Read ArticlePractical strategies to lower your break-even point through cost reduction, pricing adjustments, and operational efficiencies.
Read ArticleFind answers to common questions about break-even analysis and our calculator.
Have questions or feedback about our Break-Even Calculator? We'd love to hear from you!
Whether you have questions about using the calculator, suggestions for improvements, or need help with your break-even analysis, our team is here to assist you.