๐ Break-Even Point Calculator
Enter your fixed costs, price per unit, and variable cost per unit to calculate the contribution margin per unit, break-even sales volume, and break-even revenue. Useful for pricing decisions, business planning, and understanding a new product's break-even line.
How to use
- Enter your fixed costs (rent, salaries, and other costs that don't depend on sales volume).
- Enter the price per unit and the variable cost per unit (e.g. per-unit cost of goods).
- The contribution margin, break-even sales volume, and break-even revenue are calculated automatically.
FAQ
What is the contribution margin?
The contribution margin per unit is the price per unit minus the variable cost per unit โ the amount each unit sold contributes toward covering fixed costs.
What happens if the variable cost is higher than the price?
If the contribution margin is zero or negative, each unit sold loses money or breaks even at best, so the break-even point can never be reached at that pricing. A warning is shown in this case instead of a result.
How is the break-even sales volume rounded?
The break-even unit count is rounded up (ceiling) to the nearest whole unit, since you can't sell a fraction of a unit and still cover all fixed costs.
Is this useful for pricing a new product?
Yes โ try different price points and see how the break-even sales volume shifts, which helps you weigh a realistic sales target against your pricing.
What should I include in fixed costs?
Include costs that stay constant regardless of sales volume, like rent, salaries, or lease payments. Costs that scale with volume, like raw materials, belong in the variable cost per unit instead.