Break-Even Analysis Calculator
Find exactly how many units you need to sell to cover your costs and start making a profit.
Formula
BEP = Fixed Costs ÷ (Price − Variable Cost)
The denominator is your contribution margin per unit.
Example: Fixed costs $10,000 / month. Price $40, variable cost $15 → Contribution margin = $25. Break-even = 10,000/25 = 400 units/month.
FAQs
Break-even analysis determines the sales volume at which total revenue equals total costs. Below this point you're losing money; above it you're profitable. It's essential for pricing, launch planning, and investment decisions.
Break-Even Units = Fixed Costs ÷ (Selling Price − Variable Cost per Unit). The denominator is the contribution margin per unit — how much each sale contributes to covering fixed costs.
Contribution margin = Selling price − Variable cost per unit. It shows how much each unit sold contributes to covering fixed costs and generating profit. A higher contribution margin means you break even sooner.