Breakeven Point Calculator

Calculate your business breakeven point free online from fixed costs, variable cost per unit, and selling price. See exactly how many units you need to sell to break even.

Fixed Costs

Selling Price / Unit

Variable Cost / Unit

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How to Use This Tool

Enter fixed costsTotal costs that don't scale with units sold

Enter price and variable cost per unitYour selling price and direct per-unit cost

See your breakeven pointExact units and revenue needed to break even

The Number Every Business Plan Needs

Before any business can claim profitability, it needs to clear its fixed costs through sales. The breakeven point identifies exactly that threshold -- the precise number of units where total revenue catches up with total costs, giving a concrete, calculable target rather than a vague sense of "selling enough."

Contribution Margin -- The Number That Drives Everything

The gap between selling price and variable cost per unit, called the contribution margin, determines how quickly fixed costs get covered. A wide margin means fewer units needed to break even; a narrow margin means many more sales are required to reach the same point, even with identical fixed costs.

Using This for Pricing Decisions

Testing different selling prices shows immediately how breakeven volume shifts -- a higher price reduces the units needed to break even but might reduce demand, while a lower price increases breakeven volume but might increase total sales. This calculator makes that tradeoff concrete and immediately visible rather than abstract.

Frequently Asked Questions

It's the exact number of units (or revenue amount) where total revenue equals total costs -- the point where you're neither making nor losing money. Below this point you're operating at a loss; above it, each additional sale contributes to profit.

Fixed costs (rent, salaries, insurance) stay the same regardless of how many units you sell. Variable costs (materials, per-unit labor, shipping) scale directly with each unit produced or sold. Both factor differently into the breakeven formula.

Breakeven Units = Fixed Costs / (Selling Price - Variable Cost per Unit). The denominator, called the contribution margin, represents how much each unit sale contributes toward covering fixed costs after its own variable cost is paid.

If the selling price is only slightly above the variable cost per unit, each sale contributes very little toward fixed costs, requiring many more total sales to cover those fixed costs compared to a product with a larger margin between price and variable cost.

Yes -- testing different selling prices in this calculator shows how breakeven volume changes, which helps evaluate whether a planned price point produces a realistic sales target given your fixed costs and expected demand.