Break-Even Calculator
Calculate break-even point for business decisions.
How to Do It Manually
Break-even is when revenue equals total costs. Calculate the number of units needed to sell to cover fixed and variable costs.
Break-even units = fixed costs / (price per unit − variable cost per unit)
- List fixed costs (rent, salaries, insurance—constant regardless of output).
- List variable costs per unit (materials, packaging, labor).
- Determine selling price per unit.
- Apply the formula to find break-even point.
Frequently Asked Questions
What happens after break-even?
Every additional sale becomes profit (revenue − variable costs). Profit increases as sales volume grows.
Can my break-even be negative?
No, break-even is always positive units. If profit margin is negative, your business model is unsustainable.