Break-Even Calculator — Find Your Business Break-Even Point
Calculate break-even point in units and revenue for any product or business.
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Your Results
Break-Even Units
334 units
Break-Even Revenue
$16,700
Contribution Margin
$30/unit
CM Ratio
60.0%
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How This Calculator Works
Break-even units = Fixed costs / (Price - Variable cost per unit). Break-even revenue = Fixed costs / Contribution margin ratio. CM ratio = (Price - Variable cost) / Price.
Frequently Asked Questions
Break-even units = Fixed Costs ÷ (Price - Variable Cost per Unit). Break-even revenue = Fixed Costs ÷ Contribution Margin Ratio.
Contribution margin = Revenue - Variable Costs. It shows how much each dollar of sales contributes to covering fixed costs and profit.
Reduce fixed costs (rent, salaries), reduce variable costs (COGS, packaging), or raise your price. All three directly reduce break-even units.
It depends on your industry. Aim to break even within 6-12 months of launch. Faster is better — it means you need less startup capital.
It shows the minimum price needed to cover costs at expected sales volume. Price below this and you lose money on every unit sold.
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Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.