How to use Break-even Calculator
- Enter the fixed costs you want to cover for the period.
- Enter the variable cost of one unit and the price you charge for it.
- Choose two decimal places or whole currency units for the result.
- Read the contribution margin per unit, the break-even point in units and the break-even revenue.
Example: Break-even Calculator
Cover 10000 in fixed costs with a price of 10 and a variable cost of 6 per unit.
Options
- Fixed costs
- Costs that stay the same for the period, such as rent, salaries and software subscriptions. Enter the total for the period you want to cover.
- Variable cost per unit
- The direct cost of one unit, such as materials and packing. The tool counts this cost for every unit sold.
- Price per unit
- The selling price of one unit before tax. A price at or below the variable cost gives no break-even point.
Supported inputs and limits
Where your input is processed
This tool processes your input in this browser. Your text and files are not uploaded to UseFreeTools. Check this tool's limits for anything it may save on your device.
Where the revenue figure comes from
The break-even point in units divides fixed costs by the contribution margin per unit. Multiplying that unit figure by the price gives the revenue at which the fixed costs are just covered. The exact ratio and the rounded-up whole count appear together, because a fractional unit cannot be sold while the exact number keeps the arithmetic visible. When the contribution margin is zero or negative, no positive unit count covers the fixed costs and the page reports no break-even point.
Sources and assumptions
The method on this page is the one the US Small Business Administration sets out: fixed costs divided by the price per unit minus the variable cost per unit, worked on a single-product basis. Source checked 28 September 2026. The page carries that arithmetic into decimal figures and adds no outside data. A mixed product line changes the answer, because each product then carries its own price and its own variable cost, and this page does not split the fixed costs between them. Treat every figure as a planning estimate, and check a real pricing decision against your own accounts.
US Small Business Administration: calculate your break-even point
Questions about Break-even Calculator
What does the contribution margin mean here?
It is the price per unit minus the variable cost per unit. With a price of 10 and a variable cost of 6, each unit adds 4.00 toward the fixed costs.
Why is there no break-even point when the price equals the variable cost?
A contribution margin of zero means each unit adds nothing toward the fixed costs, so no number of units ever covers them. The page reports that result instead of dividing by zero.
Why are two unit figures shown?
The exact figure is the ratio of fixed costs to the contribution margin and can hold a fraction. The second figure moves that number up to the next whole unit, the smallest count you can sell.
Does the break-even revenue include sales tax?
No. The revenue is the break-even units multiplied by the price you entered, so it holds no sales tax, VAT or other charge.
What happens when I enter zero fixed costs?
Nothing has to be covered, so the break-even point is 0 units and 0.00 in revenue. The page still reports the contribution margin, because each sale from the first one either adds to profit or loses money once the price sits below the variable cost.