Units · revenue · contribution margin · margin of safety. Enter fixed costs, selling price, and variable cost per unit to find break-even units and revenue. Add a target profit or expected sales to see units needed and your margin of safety—runs in your browser.
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The break-even point is the sales volume where total revenue equals total costs and profit is zero. This break even calculator finds that point in units and in sales dollars from fixed costs, price, and variable cost per unit.
Break-even estimates assume constant price and variable cost per unit for a single product or averaged unit. Real businesses face price elasticity, volume discounts, and changing costs—consult an accountant or financial advisor for business planning decisions.
The break-even point (BEP) is the sales level at which you cover all costs and are neither making nor losing money. Below break-even you operate at a loss; above it, each additional unit contributes to profit.
A break even calculator (or break-even point calculator) turns three inputs into that answer: fixed costs for the period, variable cost per unit, and selling price per unit. From those it derives contribution margin per unit, break-even units, and break-even revenue—the sales dollars needed to break even.
Use one consistent period (all monthly or all annual). This tool models single-unit economics—one product, SKU, seat, or service engagement—or a simplified average unit. It does not calculate multi-product sales mix or weighted-average contribution margin.
Break-even units = fixed costs ÷ contribution margin per unit. Break-even revenue = break-even units × selling price.
Add expenses that stay the same in the period you are analyzing—rent, salaries, insurance, software subscriptions, loan payments. Keep monthly and annual figures consistent.
Enter the cost that rises with each unit sold: materials, packaging, shipping, payment fees, or commissions. Use cost per unit—not total variable spend for all units.
Enter the price you charge for one unit, product, seat, or service engagement. Price must be higher than variable cost per unit.
The calculator shows contribution margin per unit (price − variable cost). That amount from each sale goes toward covering fixed costs before profit.
Read how many units you must sell to break even (exact and rounded). That is your break-even point in units.
Read break-even revenue—the sales dollars needed to break even (break-even units × price).
Enter a target profit to see how many units you need beyond break-even: (fixed costs + target profit) ÷ contribution margin per unit.
Enter expected or projected units to see margin of safety as a percentage of expected revenue, plus a simple risk label. Review the chart and scenario projections for context.
This break even formula uses the contribution margin method for a single product or averaged unit. The calculator applies these formulas locally in your browser.
Formula
Contribution margin per unit = Selling price − Variable cost per unit
Break-even units = Fixed costs ÷ Contribution margin per unit
Break-even revenue = Break-even units × Selling price
Units for target profit = (Fixed costs + Target profit) ÷ Contribution margin per unit
Margin of safety % = (Expected revenue − Break-even revenue) ÷ Expected revenue × 100
Example: Fixed $10,000 · Variable $5 · Price $15
→ CM = $10 · Break-even units = 1,000 · Break-even revenue = $15,000Break-even point in units—how many units to sell to break even. Primary output of this break even units calculator.
| Concept | What it means | This calculator |
|---|---|---|
| Break-even units | Units where profit = 0 | Fixed costs ÷ contribution margin per unit |
| Rounded units | Whole units you must sell | Ceil of exact break-even units |
| How many units to break even | Planning question | Same as break-even units result |
Exact and rounded unit counts are shown so you can plan inventory and sales targets.
Break-even point in sales dollars—sales needed to break even / break-even revenue.
| Concept | Formula | Use |
|---|---|---|
| Break-even revenue | Break-even units × selling price | Revenue target to cover all costs |
| Sales needed to break even | Same as break-even revenue | Dollar planning and forecasts |
| Break-even point in sales dollars | Same result | CVP reporting language |
Contribution margin in break-even analysis—what each sale contributes toward fixed costs.
| Metric | Formula | Shown in this tool? |
|---|---|---|
| Contribution margin per unit | Price − variable cost per unit | Yes — dedicated result |
| Contribution margin ratio | CM ÷ price | Not shown as a dedicated output |
| Role in break-even | Denominator for units | Break-even units = fixed ÷ CM/unit |
This page explains contribution margin for break-even; it displays contribution margin per unit only.
Optional target profit → units needed for target profit / sales volume for target profit.
| Input | Result | Formula |
|---|---|---|
| Target profit ($) | Units for target profit | (Fixed + target profit) ÷ CM per unit |
| Leave blank | Break-even only | Standard BEP units and revenue |
Business margin of safety when you enter expected units—shown as a percentage.
| Metric | What you get | What you do not get |
|---|---|---|
| Margin of safety % | (Expected revenue − BE revenue) ÷ expected revenue | — |
| Risk label | Simple low / moderate / high style cue | — |
| MOS in $ or units | Computed internally for % | Not shown as dedicated MOS $ / units cards |
This is a margin of safety percentage calculator for break-even planning—not investment “margin of safety.”
Fixed cost, variable cost, and selling price drive every break-even result.
| Input | Examples | Why it matters |
|---|---|---|
| Fixed costs | Rent, salaries, insurance, software | Must be covered before profit |
| Variable cost per unit | Materials, shipping, payment fees | Reduces contribution margin |
| Selling price per unit | Unit, seat, or project price | Must exceed variable cost |
Fixed and variable cost break even only works when price > variable cost per unit.
Visual break-even analysis already built into the calculator.
| Feature | What it shows |
|---|---|
| Revenue line | Sales dollars as units increase |
| Total cost line | Fixed costs plus variable costs |
| Loss zone | Area before the break-even point |
| BEP marker | Where revenue meets total cost |
| Scenario table | Profit projections at BEP−50%, BEP, BEP+25%, BEP+50% |
Scenario rows are not full sensitivity analysis—they illustrate nearby volumes.
Fixed costs $10,000/month, variable cost $5/unit.
| Price per unit | Contribution margin | Break-even units | Break-even revenue |
|---|---|---|---|
| $10 | $5 | 2,000 units | $20,000 |
| $12 | $7 | 1,429 units | $17,148 |
| $15 | $10 | 1,000 units | $15,000 |
| $18 | $13 | 769 units | $13,842 |
| $20 | $15 | 667 units | $13,340 |
Higher prices reduce break-even units but can reduce demand—consider elasticity.
Input
Fixed: $8,000/mo · Variable cost/cup: $1.20 · Price: $4.50Output
CM: $3.30/cup · Break-even: 2,424 cups/mo (~81/day) · Revenue: ~$10,909$8,000 ÷ ($4.50 − $1.20) = 2,424 cups. If you expect 3,200 cups, margin of safety % is based on expected vs break-even revenue.
Input
Fixed: $4,000/mo · Variable: $12 · Price: $29.99Output
CM: $17.99 · Break-even ≈ 223 units · Revenue ≈ $6,678How many products to sell to break even: fixed ÷ CM. Raising price or cutting variable cost lowers units needed.
Input
Fixed: $2,500 · Variable (COGS+ship+fees): $18 · Price: $45Output
CM: $27 · Break-even ≈ 93 units · Revenue ≈ $4,167Fold marketplace fees and shipping into variable cost per unit so sales needed to break even stay realistic.
Input
Fixed overhead: $3,000/mo · Variable per project: $200 · Price per project: $1,200Output
CM: $1,000 · Break-even: 3 projects · Revenue: $3,600Treat each engagement as a unit. Use the Freelance Rate Calculator when setting the fee, then confirm volume covers overhead here.
Input
Fixed burn: $20,000/mo · Variable/seat: $4 · Price/seat: $29Output
CM: $25 · Break-even: 800 seats · Revenue: $23,200Per-seat unit economics only—if you sell multiple plans, average one representative seat or run separate scenarios.
Input
Fixed: $10,000 · Variable: $5 · Price: $15 · Target profit: $5,000Output
CM: $10 · Units for target profit: 1,500(10,000 + 5,000) ÷ 10 = 1,500 units—sales volume for target profit above the 1,000-unit break-even.
Small business
Enter monthly overhead, typical price, and per-unit or per-job variable cost to see how many sales you need before the business covers costs.
Product / retail
Model one product: fixed launch or shelf costs, landed cost per unit, and selling price to find units and sales dollars to break even.
Ecommerce
Treat one SKU as the unit. Fold pick/pack and payment fees into variable cost per unit, then find units and revenue needed to break even.
Services & freelancers
Treat each client project or billed engagement as a unit. Pair with freelance rate planning when you set the hourly floor, then check volume against fixed overhead.
SaaS
Use seats or subscriptions as units, fixed burn as fixed costs, and per-seat hosting/support as variable cost—single-unit economics only, not multi-plan mix.
Startups
Before scaling spend, check whether realistic volume covers fixed burn at your planned price and variable cost.
Step-by-step chains that connect related tools for common tasks.
Set margin first, then confirm volume viability.
Rate floor, then engagements to break even.
Per-plate cost into cup or plate volume.
Use this break even calculator for CVP units, revenue, contribution margin per unit, target-profit units, and margin of safety %. Pair nearby tools for margin %, percentages, discounts, meal costing, or freelance rates.
| Related tool | Use this tool when | Use related tool when |
|---|---|---|
| Profit Margin Calculator | You need break-even units, break-even revenue, target-profit units, or margin of safety % from fixed and variable costs. | You need profit margin %, markup %, or a selling price for a target margin. |
| Percentage Calculator | You are running full break-even / CVP math with costs and price. | You only need a quick percentage, percent change, or markup helper. |
| Discount Calculator | You are finding volume needed to cover costs at a given price. | You are applying sale discounts to a list price. |
| Meal Cost Calculator | You need café or restaurant units (cups, plates) to cover fixed overhead. | You need ingredient cost per serving before pricing. |
| Freelance Rate Calculator | You already have a project price and need engagements to cover overhead. | You need a minimum hourly rate from income, expenses, and billable hours. |
Include all period overhead—rent, salaries, insurance, software—not only product cost.
Enter variable cost per unit. Total variable spend for all units will inflate break-even dramatically.
Contribution margin must be positive. If price ≤ variable cost, you cannot break even by selling more.
Keep fixed costs, target profit, and expected units on the same period (all monthly or all annual).
Units answer “how many”; revenue answers “how many dollars of sales.” Both appear in the results.
Contribution margin is price − variable cost per unit for CVP. Profit margin % is profit ÷ price—use the Profit Margin Calculator for that.
This calculator is single-unit economics. Average one representative unit or run separate scenarios per product.
Use the Profit Margin Calculator for margin and markup. Use this page for break-even volume and revenue.
Business MOS % here compares expected sales to break-even—not Graham-style investment margin of safety.
Concise answers for common searches — definitions, steps, and comparisons.
Break-even units = Fixed costs ÷ (Price − Variable cost per unit). Break-even revenue = Break-even units × Price.
Divide fixed costs by contribution margin per unit (price minus variable cost). That is your break-even point in units.
Multiply break-even units by selling price, or use the break-even revenue result from this calculator.
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The break-even point is the sales volume where total revenue equals total costs and profit is zero. This calculator reports it as break-even units and break-even revenue (sales dollars).
Break-even units = Fixed costs ÷ (Selling price − Variable cost per unit). Enter those three values to get exact and rounded units instantly.
Break-even revenue = Break-even units × Selling price. It is the sales dollars needed to break even for the period.
Contribution margin per unit = Price − Variable cost. Break-even units = Fixed costs ÷ Contribution margin per unit. Break-even revenue = Break-even units × Price.
Contribution margin per unit = Selling price − Variable cost per unit. It is how much each sale contributes toward covering fixed costs before profit. This calculator displays contribution margin per unit; it does not show contribution margin ratio as a dedicated result.
Fixed costs stay the same in the period regardless of volume (rent, salaries, insurance). Variable costs rise with each unit sold (materials, shipping, payment fees). Keep both on the same monthly or annual basis.
Use break-even units = Fixed costs ÷ Contribution margin per unit. That answer is the main output of this break even units calculator.
Units for target profit = (Fixed costs + Target profit) ÷ Contribution margin per unit. Enter an optional target profit to see that volume.
Margin of safety measures how far expected sales sit above break-even. Enter expected units to see margin of safety as a percentage of expected revenue, plus a simple risk cue.
Margin of safety % = (Expected revenue − Break-even revenue) ÷ Expected revenue × 100. This tool shows that percentage; it does not show separate margin-of-safety dollar or unit cards.
Yes. Treat each engagement, project, or billed package as a unit. Fixed costs are overhead; variable costs are direct costs per engagement.
Yes. Small business and startup owners commonly use a break even calculator to test whether realistic volume covers rent, payroll, and other fixed costs at a planned price.
Contribution margin is zero or negative, so you cannot break even by selling more. Raise price, lower variable cost, or change the offer.
High fixed costs, a thin contribution margin, or both. Lower overhead, raise price, or cut variable cost per unit to reduce units needed.
Break-even answers when profit hits zero (units and revenue). Profit margin answers what percent of price is profit. Use this page for CVP break-even; use the Profit Margin Calculator for margin % and markup.
Yes—as long as every input uses the same period. Do not mix monthly fixed costs with annual target profit or expected units.
Not as a full sales-mix model. This calculator is single-unit economics. Use an average unit, or run separate scenarios per product. It does not compute weighted-average contribution margin.
No. Results are pre-tax planning estimates. Tax-adjusted break-even needs extra assumptions—consult an advisor for tax planning.
A higher price increases contribution margin per unit, so break-even units and often break-even revenue fall—assuming demand holds. The pricing table on this page illustrates the effect.
Yes. Use copy, share URL, or print from the calculator. Calculations run in your browser; typical inputs are not uploaded to EverydayTools servers.
Cost, price, and volume inputs are calculated locally in your browser—they are not uploaded to EverydayTools servers for normal use.
Real business break-even can include semi-variable costs, volume discounts, and demand elasticity. These results are planning estimates—consult a financial advisor for business decisions. Financial results are estimates for planning only — not tax, legal, or investment advice. Verify with your employer, institution, or a qualified professional.
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Reviewed by EverydayTools Editorial Team on 2026-09-06.
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Please fix the following:
Rent, salaries, utilities—costs that don't change with sales.
Materials, labor per unit—costs that increase with each sale.
Must exceed variable cost per unit.
Units needed = (Fixed Costs + Target Profit) ÷ (Price − Variable Cost)
Margin of Safety = (Actual Sales − Break-Even Sales) / Actual Sales
Formula: Break-even units = Fixed Costs ÷ (Price per Unit − Variable Cost per Unit)