Break-Even Calculator
Estimate the break-even point for a simplified single-product scenario from fixed costs, selling price per unit, and variable cost per unit. Results distinguish exact (possibly fractional) units from the minimum whole units needed to cover fixed costs.
Your results will appear here
Enter your assumptions and calculate to see the estimated result and supporting details.
How this calculator works
Enter fixed costs, selling price per unit, and variable cost per unit.
Primary result is minimum whole units to break even. Secondary results include contribution margin, exact units, exact and whole-unit revenue, and estimated profit at that whole-unit quantity.
Formula / methodology
contributionMargin = price − variableCost exactUnits = fixedCosts / contributionMargin minimumWholeUnits = ceil(exactUnits) exactRevenue = fixedCosts / marginRatio
- If fixed costs > 0 and contribution margin ≤ 0, there is no positive-volume break-even under the entered assumptions.
- Zero fixed costs yields a break-even of 0 units.
- Whole-unit ceiling uses a robust implementation so exact integers are not accidentally rounded up by floating-point noise.
Worked example
Fixed costs $10,000, price $50, variable $30 → margin $20 (40%), exact units 500, whole units 500, revenue $25,000, profit $0.
Fixed costs $10,001 → exact units 500.05, whole units 501, whole-unit revenue $25,050, profit $19 (profit at 500 units would be −$1).
Important assumptions
- Costs and selling prices are assumed constant.
- Simplified single-product model. Demand, taxes, and financing are not modeled.
Common questions
Exact units answer the continuous accounting break-even. Whole units answer the smallest sellable integer quantity that covers fixed costs.
Contribution margin is zero. If fixed costs are positive, the calculator returns a limitation instead of Infinity.
No. Revenue is sales dollars. Profit subtracts variable costs and fixed costs.