Free Break Even Calculator

Calculate how many units you need to sell to break even. Essential for business planning, pricing strategy, and startup analysis.

USD
USD
USD

Break Even Units

334

Break Even Revenue$16,700.00
Contribution Margin Per Unit$30.00

Break Even Units vs Fixed Costs

How to Calculate Break Even Point

Formula

Break Even Units = Fixed Costs / (Price Per Unit - Variable Cost Per Unit)

The denominator is called the contribution margin -- the amount each unit contributes toward covering fixed costs. Once all fixed costs are covered, every additional unit sold generates profit.

Example Calculation

A business has $10,000 in fixed costs. Each unit sells for $50 with a variable cost of $20.

  1. 01Contribution margin = $50 - $20 = $30 per unit
  2. 02Break even units = $10,000 / $30 = 334 units
  3. 03Break even revenue = 334 x $50 = $16,700

Frequently Asked Questions

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