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Business

Break-Even Calculator

Find the sales volume and revenue needed to cover all fixed and variable costs.

CalculateWise provides estimates for informational purposes only and is not financial, tax, legal, lending or investment advice.

How to use the Break-Even Calculator

  1. Enter fixed costs.
  2. Enter variable cost per unit and selling price per unit.
  3. Read the break-even point.

How it works

Each unit sold contributes price minus variable cost toward covering fixed costs. The break-even point is when total contribution equals fixed costs.

Formula

Break-even units = fixed costs ÷ (price − variable cost)

Example

With $5,000 fixed costs, $20 variable cost and $50 price, you must sell 167 units to break even.

Common uses

  • Product launches
  • Pricing decisions
  • Sales targets

Frequently asked questions