# Break-Even Calculator

URL: https://speedycalculator.com/calculators/finance/break-even/
Last updated: 2026-10-25

> The break-even calculator finds how many units you need to sell to cover all your costs, from fixed costs, price and variable cost per unit, and the break-even revenue – plus the units needed to reach a target profit.

## Inputs

- Revenue (price) per unit
- Variable cost per unit
- Fixed costs
- Target profit

## Results

- Contribution margin per unit
- Contribution margin ratio
- Break-even units
- Break-even revenue
- Units for the target profit

## Formula

```
Break-even units = fixed costs ÷ (price − variable cost per unit)
Break-even revenue = units × price
Units for a target profit = (fixed costs + target profit) ÷ contribution margin
```

## Explanation

Every unit you sell contributes its price minus its variable cost towards fixed costs. Once fixed costs are covered, each extra unit adds profit. If the price does not exceed the variable cost, you can never break even.

### How to use the Break-Even Calculator

- **Revenue (price) per unit**
- **Variable cost per unit**
- **Fixed costs**
- **Target profit**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the revenue (price) per unit, the variable cost per unit, total fixed costs and an optional profit target.

### Tips

- Use figures for the same period (a month, a quarter or a year) for every input so ratios compare like with like.
- Track the metric over time – the trend usually tells you more than a single value.
- Compare your result with industry benchmarks, which vary a lot between sectors.
- Treat the result as a starting point for a decision, then check the assumptions behind each input.

### Common mistakes to avoid

- Mixing monthly and yearly numbers in the same calculation.
- Using revenue where the formula needs profit (or the other way round).
- Forgetting hidden costs such as taxes, fees, overheads or your own time.

### Inputs explained

FieldWhat to enterRevenue (price) per unitAmount in your currencyVariable cost per unitAmount in your currencyFixed costsAmount in your currencyTarget profitAmount in your currency

### What each result means

- **Contribution margin per unit** = [Revenue (price) per unit] - [Variable cost per unit]
- **Contribution margin ratio** = ([Revenue (price) per unit] - [Variable cost per unit])÷[Revenue (price) per unit]×100
- **Break-even units** = ceil([Fixed costs]÷([Revenue (price) per unit] - [Variable cost per unit]) - 0.000001)
- **Break-even revenue** = [Fixed costs]÷(([Revenue (price) per unit] - [Variable cost per unit])÷[Revenue (price) per unit])
- **Units for the target profit** = ceil(([Fixed costs] + [Target profit])÷([Revenue (price) per unit] - [Variable cost per unit]) - 0.000001)

### Example values

How the main result changes when **Revenue** changes and everything else stays at the example values above:

Revenue (price) per unitBreak-even units20-2,400302,40040800504806034380219

## Worked example

Inputs — Revenue (price) per unit: $40; Variable cost per unit: $25; Fixed costs: $12,000; Target profit: $3,000.

Results — Contribution margin per unit = $15.00; Contribution margin ratio = 37.5 %; **Break-even units = 800**; Break-even revenue = $32,000.00; Units for the target profit = 1,000.

## FAQ

**What is the break-even point?**
The sales level at which revenue equals total costs – no profit, no loss.

**What if my price is below variable cost?**
You lose money on every unit and cannot break even; raise the price or cut costs.

**How do I lower the break-even point?**
Raise the price, cut variable costs or reduce fixed costs.

**What formula does the Break-Even Calculator use?**
Break-even units = fixed costs ÷ (price − variable cost per unit).


## Sources

- [Corporate Finance Institute – financial ratios](https://corporatefinanceinstitute.com/)