Break-Even Point Calculator

About this calculator

This calculator finds the break-even point — the exact number of units you need to sell, and the revenue that represents, before a business starts making a profit. It works by comparing the selling price per unit against variable costs (which scale with each sale) and fixed costs (which stay the same regardless of volume), dividing total fixed costs by the contribution margin per unit to find where total revenue exactly equals total cost.

It is a core tool for anyone launching a product, pricing a new service, or evaluating whether a business idea is financially viable, since it turns abstract cost and pricing assumptions into a concrete sales target. Small business owners use it when setting prices or deciding whether a cost-cutting measure would lower the number of sales needed to stay afloat, and investors or lenders often ask for a break-even analysis before backing a new venture.