EvenPoint

Break-Even Calculator

Fixed costs, variable cost per unit, selling price — get the exact units (and revenue) needed before the business turns a profit.

Total fixed costs

Variable cost per unit

Selling price per unit

Costs vs. revenue

Where the revenue line crosses the total-cost line is your break-even point.

Break-even point

1,176 units

$29,412 in revenue

Contribution margin / unit: $17.00
Contribution margin ratio: 68%

What you entered

Fixed costs: $20,000Variable cost/unit: $8.00Price/unit: $25.00

1
Contribution margin per unit
$25 − $8= $17
2
Break-even units
$20,000 ÷ $17= 1176.5 units
3
Break-even revenue
1176.5 × $25= $29,411.76

Result

Break-even units: 1,176 units

You need to sell 1,176 units ($29,412 in revenue) before fixed costs are covered — every unit sold after that is profit.

Units and revenue needed to break even at common cost structures

Each row divides monthly fixed costs by the contribution margin, which is the selling price minus the variable cost of one unit, to get the units that must sell before the month turns a profit. Break-even revenue is those units at the same selling price.

Monthly fixed costs	Variable cost per unit	Price per unit	Break-even units	Break-even revenue
$1,200	$10.00	$30.00	60	$1,800
$4,000	$50.00	$150.00	40	$6,000
$6,000	$4.00	$12.00	750	$9,000
$8,000	$1.00	$5.00	2,000	$10,000
$12,000	$5.00	$45.00	300	$13,500
$15,000	$35.00	$60.00	600	$36,000
$20,000	$8.00	$25.00	1,176	$29,412
$25,000	$9.00	$49.00	625	$30,625
$50,000	$150.00	$250.00	500	$125,000

Fixed costs are the ones that do not move with volume, such as rent, insurance, salaries and software. Variable costs move with every unit, such as materials, packaging, shipping and sales commission. Unit counts are shown as whole units the way the calculator rounds them, while break-even revenue is worked out from the unrounded figure, which is why the $20,000 row reads $29,412 rather than 1,176 x $25. Raising price is the fastest lever here because it widens the contribution margin on every unit, but only if demand holds, so treat these rows as illustrative and run your own cost structure through the tool.

Contribution margin

Each unit's selling price minus its variable cost is the contribution margin. Divide your fixed costs by that to get the break-even unit count.

Frequently asked questions

My rent is $5,000/month, each product costs $12 to make, and I sell it for $30 — how many do I need to sell?

Contribution margin = $30 − $12 = $18 per unit. Break-even units = $5,000 / $18 = 278 units per month. Break-even revenue = 278 × $30 = $8,340. Anything above 278 units is profit.

How does break-even change if I raise my price?

Higher price = higher contribution margin per unit = fewer units needed. If you raise from $30 to $35, contribution margin goes from $18 to $23, and break-even drops from 278 to 218 units — 22% fewer sales needed. But check whether the higher price reduces demand.

What counts as a fixed cost vs. a variable cost?

Fixed costs don't change with volume: rent, insurance, salaries, software subscriptions. Variable costs scale with each unit: raw materials, shipping, packaging, sales commissions. Some costs are semi-variable (electricity, hourly labor) — assign the portion that changes with output to variable.