Find exactly how many units you need to sell to cover all costs.
Inputs
Rent, salaries, insurance — costs that don't change with volume.
Materials, shipping, commissions — costs per unit sold.
How many units you need to sell to achieve a specific profit goal.
Results
Profit at Different Sales Volumes
| Units Sold | Revenue | Variable Costs | Profit / Loss |
|---|---|---|---|
| 84 | $4,200.00 | $1,680.00 | −$7,480.00 |
| 167 | $8,350.00 | $3,340.00 | −$4,990.00 |
| 334BEP | $16,700.00 | $6,680.00 | $20.00 |
| 501 | $25,050.00 | $10,020.00 | $5,030.00 |
| 668 | $33,400.00 | $13,360.00 | $10,040.00 |
Fixed costs of $10,000.00 are included in each row. BEP = Break-Even Point (units rounded up).
Formulas
Tip: A higher contribution margin means fewer units are needed to cover fixed costs, reducing your business risk.
The break-even point calculator tells you exactly how many units you must sell before your business stops losing money. Enter your total fixed costs (rent, salaries), the selling price per unit, and variable cost per unit. The tool instantly computes break-even units, break-even revenue, contribution margin, and optional units needed to hit a profit target.
The break-even point is the number of units you need to sell so that total revenue equals total costs — meaning zero profit and zero loss. Selling beyond this point generates profit; selling below it results in a loss.
Contribution margin is the selling price minus the variable cost per unit. It represents how much each unit sold contributes toward covering fixed costs. A higher contribution margin means you break even with fewer sales.
Fixed costs stay constant regardless of production volume — rent, insurance, salaries, equipment leases. Variable costs change with each unit produced or sold — raw materials, packaging, shipping, sales commissions.
Add your target profit to your fixed costs, then divide by the contribution margin per unit: (Fixed Costs + Target Profit) ÷ Contribution Margin. This calculator does that automatically when you fill in the optional Target Profit field.