Break-Even Calculator — How to Calculate Break-Even Point
Calculate the break-even point in units and revenue from fixed costs, price per unit, and variable cost per unit. Contribution margin is shown so the formula stays transparent. Example: fixed costs 10,000, price 50, variable cost 30 → 500 units and 25,000 revenue. Runs in your browser; educational only — not business or investment advice.
How it works
Enter fixed costs, selling price per unit, and variable cost per unit. The tool computes contribution margin, break-even units, and break-even revenue. Industry labels (retail, SaaS, etc.) stay as use-case text — not separate URLs.
Formula and assumptions
Break-even units Q = FC / (P − V), where FC is fixed cost, P is price per unit, and V is variable cost per unit. Break-even revenue = Q × P. Contribution margin per unit = P − V. Assumptions:
- Costs and prices are constant; taxes, discounts, and inventory are not modeled.
- One product (or average unit) view — mix shifts are out of scope here.
- Results are educational illustrations, not forecasts or business advice.
Example
Example: fixed costs 10,000, price 50, variable cost 30 → contribution margin 20 → break-even 500 units and revenue 25,000.
When to use it
- Classwork: practice the break-even units formula with fixed FC, P, and V.
- Rough sketch of how many units cover fixed costs before talking to an advisor (illustration only).
- See contribution margin and break-even revenue on one page without a separate tool URL.
Frequently asked questions
What break-even formula does this use?
Q = FC / (P − V). Revenue at break-even is Q × P. Contribution margin per unit is P − V.
What if price equals variable cost?
Contribution margin is zero or negative, so there is no finite break-even volume. Raise price or lower variable cost in the model.
Is this business advice?
No. Numbers are educational illustrations only and are not business, tax, or investment advice.
Units vs revenue break-even?
Both appear in the results: units from the formula, revenue as units times price — same page, not two tools.
Important notice
Break-even results are educational illustrations only and are not business, financial, tax, or investment advice. Real businesses face fees, taxes, and changing costs this page does not model.
References: Investopedia break-even point and contribution margin definitions; standard FC/(P−V) units formula.
Related tools
Questions or feedback
Something unclear, broken, or missing? Draft a message below — we read every note about these tools.