Break-even point calculator
My fixed costs are given
How to use this calculator?
1. Choose whether your fixed costs are monthly or yearly, then enter them
2. Enter the unit selling price and the variable cost of one unit
3. Add expected sales to get the profit, the margin of safety and the break-even date
4. Share the calculation or change the prices to test several scenarios
Quick answer
How do you calculate the break-even point?
Break-even revenue = fixed costs ÷ contribution margin ratio. Example: €5,000 of fixed costs per month and a product sold for €50 that costs €20 to make. The unit contribution is €30, or 60% of the price. Break-even = 5,000 ÷ 0.6 = €8,333.33 of revenue per month, which is 167 sales.
| Fixed costs / month (price €50, variable cost €20) | Break-even revenue | Units needed |
|---|---|---|
| €2,000 | €3,333.33 | 67 |
| €5,000 | €8,333.33 | 167 |
| €10,000 | €16,666.67 | 334 |
About the Break-Even Calculator
What is it?
The break-even calculator gives the revenue and the number of sales at which your business covers all its costs. With expected sales, it also shows the profit, the margin of safety and the break-even date.
Why use it?
Knowing your break-even point is essential to set prices, build a business plan or decide on a hire. Banks and investors also ask for it when you start a business.
How does it work?
Unit contribution margin = selling price − variable cost. Contribution margin ratio = unit contribution ÷ selling price. Break-even units = fixed costs ÷ unit contribution. Break-even revenue = fixed costs ÷ contribution margin ratio. Break-even day = annual break-even revenue ÷ annual revenue × 365, assuming steady sales.
Usage tips
- Sort your costs carefully: rent, fixed salaries and subscriptions are fixed, materials and commissions are variable
- A price rise of a few percent often lowers the break-even point sharply
- A margin of safety below 10% signals a fragile business
- If your sales are seasonal, the real break-even date will come earlier or later than shown
- To set a selling price from your cost, use the margin calculator