Break-even Calculator — Free Online Break-even Analysis Tool
Find the sales volume needed to cover all costs. Free online break-even calculator — your data stays in your browser, no account needed.
Your Numbers
Results update instantly as you type.
Break-even Point
834
units sold
= $83,333 in revenue
Contribution Margin
$60
per unit
Contribution Margin Ratio
60.0%
of revenue
Fixed Costs
$50,000
to cover
Break-even Revenue
$83,333
total sales needed
Variable Cost / Unit
$40
per unit sold
Selling Price / Unit
$100
per unit
Break-even Chart
Revenue and total cost vs. units sold. Profit begins where the lines cross.
- Revenue
- Total Cost
How Break-even Analysis Works
Break-even analysis tells you the minimum sales volume required to cover all costs — the point where total revenue equals total costs and profit is exactly zero. The core formula is:
Break-even Units = Fixed Costs ÷ (Selling Price − Variable Cost per Unit)
Key terms
- Fixed Costs — costs that don't change with output: rent, salaries, insurance, software subscriptions.
- Variable Costs — costs that increase with each unit: raw materials, packaging, payment processing fees.
- Contribution Margin — the amount each unit contributes toward covering fixed costs and generating profit. Formula: Price − Variable Cost.
- Contribution Margin Ratio — contribution margin as a percentage of selling price. Higher is better — it means more of each sale covers overhead.
How to use this for pricing decisions
- 📉Lower your break-even point by reducing fixed costs or increasing price.
- 📈Add a profit target to see exactly how many units generate the income you need.
- ⚖️Compare scenarios: a higher price raises the contribution margin and lowers break-even units.
- 💡If your variable cost is close to your selling price, your contribution margin is thin — a small drop in sales volume will push you into loss territory.
Related: Profit Margin Calculator to find margin on each unit sold, or Commission Calculator if your cost structure includes sales commissions.
Frequently Asked Questions
Is the Break-even Calculator free?
Yes — completely free. No account, no subscription, and no data is sent to a server.
Does it store my business data?
No data leaves your device. All calculations run in your browser. Nothing is sent to a server.
Do I need an account?
No account, no login, and no signup required.
What is a contribution margin?
The contribution margin is the selling price minus the variable cost per unit. It represents how much each sale contributes toward covering fixed costs. Once total contributions equal total fixed costs, you have reached break-even.
How do I lower my break-even point?
Three levers: reduce fixed costs (overhead, rent, subscriptions), reduce variable costs per unit (materials, processing fees), or increase your selling price. Raising price has the largest impact on the contribution margin, but it may affect demand.
What is a profit target and how does it affect the calculation?
A profit target is the amount you want to earn above break-even. Adding a target shifts the break-even point upward — you need to sell more units to cover costs plus generate your desired profit.