Determine the point at which your business becomes profitable by calculating your break-even point. Understand when your revenue equals your costs.
Break-even Point (Units): 0
Break-even Point (Revenue): $0
Contribution Margin: $0
Contribution Margin Ratio: 0%
Understand the concept and steps to calculate your business's break-even point
Fixed costs are expenses that don't change with production volume, such as rent, salaries, and insurance.
Variable costs change with production volume, such as raw materials, packaging, and shipping.
Determine the price at which you'll sell each unit of your product or service.
Subtract variable costs from the selling price to find the contribution margin per unit.
Divide fixed costs by the contribution margin to find how many units you need to sell to break even.
Use the break-even point to make informed decisions about pricing, costs, and sales targets.
Explore our comprehensive collection of financial calculators
Calculate loan payments, interest, and amortization schedule
Calculate Equated Monthly Installments for loans
Calculate simple and compound interest
Calculate mortgage payments and affordability
Calculate investment growth and returns
Calculate Return on Investment for projects
Convert between different world currencies
Calculate Systematic Investment Plan returns
Calculate GST, VAT, and Income Tax
Calculate gross and net profit margins
Calculate take-home pay and deductions
Calculate discounts and sale prices
Our calculator provides accurate and insightful break-even analysis
Get your break-even point calculation in seconds with our fast and efficient calculator.
All calculations happen locally in your browser. We never store or transmit your financial data.
Access our calculator on any device - desktop, tablet, or mobile - with a perfect experience.
Get not just the break-even point but also contribution margin and other key metrics.
All our calculators are 100% free to use with no hidden costs or premium tiers.
Save your calculations and export results for future reference or documentation.
Find answers to common questions about break-even analysis
The break-even point is the point at which total revenue equals total costs, meaning there is no net loss or gain. At this point, a business has sold enough units to cover all its fixed and variable costs.
Break-even analysis helps businesses determine the minimum sales volume needed to avoid losses, set realistic sales targets, make pricing decisions, and evaluate the financial viability of new products or services.
Fixed costs remain constant regardless of production volume (e.g., rent, salaries, insurance). Variable costs change with production volume (e.g., raw materials, packaging, shipping).
You can lower your break-even point by reducing fixed costs, decreasing variable costs per unit, or increasing your selling price. Each of these strategies increases your contribution margin per unit.
Contribution margin is the amount remaining from sales revenue after variable expenses have been deducted. It represents the portion of sales revenue that contributes to covering fixed costs and generating profit.
Yes, break-even analysis can be applied to service businesses by defining a "unit" as a service hour, project, or client. The same principles apply - you need to cover fixed costs with the contribution margin from each service unit.
Explore our full suite of financial calculators to make informed business decisions