Break-Even Pricing Calculator

About this calculator

Break-even pricing finds the minimum price per unit a business must charge at a given sales volume to cover all costs — fixed costs (rent, salaries, equipment that don't change with output) plus variable costs (materials, per-unit labor, packaging that scale with each unit sold) — with zero profit or loss. The formula is price = (fixed costs / expected unit volume) + variable cost per unit, so the price needed to break even falls as expected volume rises, since fixed costs get spread across more units.

Small business owners, product managers, and manufacturers use it when launching a new product to set a pricing floor, when negotiating a bulk order to know the lowest acceptable per-unit price, or when volume drops and they need to know how much prices must rise to stay at break-even.

This calculator takes your fixed costs, variable cost per unit, and expected sales volume and returns the break-even price per unit.