Break-Even Calculator
Find how many units of one product or service cover fixed and variable costs.
Result
Break-even point: 180 unitsEstimate
This models one product or service at constant price and variable cost for one consistent period. Separate mixed costs before entering them.
- Whole break-even units
- 180Estimate
- Zero means selling price does not exceed variable cost.
- Exact break-even units
- 180Estimate
- Revenue at whole-unit break-even
- $8,100.00Estimate
- Contribution per unit
- $15.00
- Contribution margin ratio
- 33.3%
- Profit or loss at planned sales
- $300.00Estimate
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Results are arithmetic estimates based on the assumptions you enter, not accounting, tax, investment or lending advice. Forecasts can be wrong and important decisions should be checked with a qualified adviser. Read the full disclaimer
How to use the Break-Even Calculator
- Use one consistent period for fixed costs and planned sales.
- Enter selling price and the cost that changes with each additional unit.
- Use the rounded-up whole-unit result as the first volume that covers costs.
The contribution that covers fixed costs
Every unit sold contributes selling price minus variable cost toward fixed costs. Break-even is the sales volume at which those total contributions exactly equal the fixed costs for the period.
contribution per unit = price − variable costbreak-even units = fixed costs ÷ contribution per unitThe exact result is useful for analysis, but the whole-unit result rounds upward. If the formula returns 76.923 units, selling 76 still leaves a loss; unit 77 is the first that covers the stated costs.
Keep the accounting period and product consistent
Monthly fixed costs require monthly sales volume. Annual fixed costs require annual volume. Mixing periods creates a result that is arithmetically tidy and economically meaningless.
This model covers one product or service at one price and variable cost. It does not model a product mix, volume discounts, capacity limits or costs that jump at thresholds. Semi-variable costs should be split into their fixed and per-unit portions before entry.
With your numbers
- Contribution per unit = $45.00 − $30.00 = $15.00
- Break-even units = $2,700.00 ÷ $15.00 = 180, rounded up to 180
- At 200 planned units, profit or loss = $300.00
Quick reference
This models one product or service at constant price and variable cost for one consistent period. Separate mixed costs before entering them.
| Example | Break-even point |
|---|---|
| 2,700 fixed with 15 contribution | 180 units |
| 10,000 fixed with 40 contribution | 250 units |
| Zero fixed cost | 0 units |
| Price equals variable cost | No finite break-even |
| Service business example | 67 units |
| Fractional exact break-even | 77 units |
Common questions about the Break-Even Calculator
- Why is the whole-unit result rounded up?
- A fraction of a unit usually cannot be sold. Rounding down would leave a small loss, so the actionable target is the next whole unit.
- What if price does not exceed variable cost?
- There is no finite break-even point under those assumptions because every additional unit fails to contribute toward fixed costs.
- How should I enter a mixed cost?
- Separate its fixed portion from the amount that changes per unit. The calculator cannot infer that split.