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Break-even Point Calculator

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Free break-even point calculator

Use our simple break-even calculator to find out how much you need to sell to cover your costs. Knowing your break-even point helps you price better and plan for profit.

How many units must you sell to cover your costs?

Break Even Point0

What is a break-even analysis?

Break-even analysis is the process of calculating the point at which your business covers all its costs and starts making a profit. It takes into account your fixed costs, variable costs, price per unit and the number of units sold — and it helps you make informed decisions on pricing, cost control and sales targets.

What you need to know?

  • It tells you how many units you need to sell — or how much revenue you need to earn — to cover all your costs and start making a profit.
  • Your break-even point is driven by fixed costs, variable cost per unit and your selling price. Even small changes to any of them shift your profitability.
  • Once you cross the break-even point, every additional sale contributes directly to profit, which makes pricing, promotions and growth far easier to plan.

How is break-even point calculated?

Break-even point is the point where your total revenue equals your total costs. Here are the two common ways to calculate it — the two modes of the calculator above.

Break Even Point (Units) =Fixed cost(Price per unit − variable cost per unit)
Break Even Point (Price) =(Fixed cost + Total variable cost)Number of units

How can the break-even point help your business?

Feasibility

Break-even analysis shows you when your business will start making a profit. It lets you plan timelines, pricing and the activity needed to get there.

Analysis

Markets move, and costs and sales move with them. Break-even analysis shows how a pricing change affects recovery time, so you know how long it takes to cover a loss.

Strategy

Use break-even insight to build sharper strategy. Whether it's a promotion, a cost cut or a product launch, test the variables and see how many units you actually need to sell.

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Frequently asked questions

What is a fixed cost?
Fixed costs are business expenses that stay the same no matter how much you produce or sell. Rent, insurance premiums and salaries are the common examples. Getting them right matters, because they are the number your contribution margin has to pay off.
What is a variable cost?
Variable costs change with your production or sales volume. They are counted per unit, so the more you make or sell, the higher the total. Sales commissions, delivery charges and temporary labour wages are typical examples.
Why is knowing the break-even point important?
Knowing your break-even point helps you set the right pricing strategy, plan realistic sales targets, keep costs under control, and judge whether a product is worth launching before you commit to it.
What does a negative or impossible result mean?
If your variable cost per unit is equal to or higher than your selling price, every sale loses money and no volume will ever cover your fixed costs. There is genuinely no break-even point — you have to raise the price or reduce the cost per unit first.

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