Break-Even Revenue Calculator

About this calculator

Break-even revenue is the sales level at which total contribution margin exactly covers fixed costs, leaving zero profit and zero loss: Break-even revenue = Fixed costs ÷ Contribution margin ratio, where the contribution margin ratio is the share of each sales dollar left over after variable costs (price minus variable cost, divided by price).

Financial analysts, small business owners, and startup founders use this figure to set realistic sales targets and to stress-test pricing decisions — since a lower contribution margin (from higher variable costs or discounting) pushes the break-even point higher, a business can look profitable on paper yet still be short of the revenue needed to cover its fixed overhead.