Break-even calculator
Enter fixed costs, a unit selling price and variable cost per unit. See contribution margin, break-even units and break-even revenue. Educational illustration — not a forecast or pricing recommendation.
Visible formulas
Contribution margin ratio = contribution ÷ price
Break-even units = fixed costs ÷ contribution margin per unit
Break-even revenue = break-even units × price
Before you enter your numbers
- Decide what counts as fixed for the period you are modeling (rent, salaried time you treat as fixed, and so on).
- Decide what varies with each unit (materials, piece-rate labor, shipping you treat as per unit).
- Use one currency and a consistent tax basis for price and costs.
- Keep contribution separate from net profit, cash and financing.
A worked example
$5,000 fixed costs, $40 price and $25 variable cost leave $15 contribution per unit. Break-even units = 5,000 ÷ 15 ≈ 333.33. At $40 each, break-even revenue ≈ $13,333.33. The contribution margin ratio is 15 ÷ 40 = 37.5%.
If variable cost equals or exceeds price, contribution is not positive and break-even units are undefined in this simple model.
Keep these assumptions with your result
- Period covered by the fixed costs
- Unit definition
- What is included in variable cost
- What is excluded (overhead, tax, returns, financing)
- Whether volume discounts or capacity limits apply
Common questions
Is break-even the same as profit?
No. At break-even in this model, contribution equals fixed costs, so modeled operating profit before other items is zero. It is not a cash guarantee and ignores items you left out of the inputs.
How is this different from margin vs markup?
Margin and markup compare profit to price or cost on a unit sale. Break-even asks how many units (or how much revenue) are needed before contribution covers a fixed-cost block. For margin vs markup arithmetic, see the sibling site ameti.capital.
Does the calculator store my numbers?
No. Calculations run in your browser. Reloading resets the example. See Privacy.
Calculator output does not establish prices, forecasts, legal compliance or suitability for any decision. See Use & limitations.