Break-Even Calculator

The break-even point is where total revenue equals total costs — your business is neither making nor losing money. Break-even units = Fixed Costs / (Price per Unit - Variable Cost per Unit). If fixed costs are $10,000, price is $50, and variable cost is $30, you break even at 500 units ($10,000 / $20).

Fixed costs stay the same regardless of sales volume: rent, salaries, insurance, loan payments. Variable costs change with production: raw materials, packaging, shipping, sales commissions. Knowing which costs are fixed vs variable is essential for accurate break-even analysis and pricing decisions.

Contribution margin is the price per unit minus the variable cost per unit. It represents how much each sale "contributes" toward covering fixed costs and eventually generating profit. In the example above, a $50 price minus $30 variable cost gives a $20 contribution margin per unit.

The calculator shows how break-even changes at different price points. Raising your price from $50 to $60 (keeping the same costs) drops break-even from 500 to 333 units. This helps you evaluate whether higher prices with potentially lower volume, or lower prices with higher volume, leads to faster profitability.

Yes — the visual chart plots total revenue and total costs against unit volume. The intersection point is your break-even point. The area between the lines shows loss (below) or profit (above). This visual representation makes it easy to understand the relationship between volume, costs, and profitability.