Break-even calculator

How many do you need to sell to break even?

See the units and sales that cover your fixed and variable costs.

Fixed costs

Price per unit (excl. VAT)

Variable cost per unit

Break-even point

334 units

Sales $16,666.67 · contribution $30.00 per unit (60%)

$10,000.00 ÷ ($50.00 − $20.00) = 333.33 units

How to use

Enter your fixed costs for the period, such as a month's rent and salaries.
Enter the price of one unit without VAT and what each unit costs you to make or buy.
Read how many units you need to sell, and the sales that takes. Copy the link to share it.

How it works

Every unit you sell earns its price minus what that unit costs you. This difference, the contribution margin, pays off the fixed costs first. Once enough units have covered them, every further sale is profit. The point in between is the break-even point.

With fixed costs F, price P and variable cost V per unit, the break-even point is F ÷ (P − V) units, and the sales needed are that number times P. This is the method and example in OpenStax, Principles of Accounting, Volume 2, section 3.2.

A fractional result rounds up to the next whole unit, because only that sale covers the last of the costs. The model assumes one price and a constant cost per unit; volume discounts, a product mix and taxes on profit are not included.

Worked example

How many sales cover €18,000.00 in costs at a €100.00 price and €20.00 variable cost?

€100.00 − €20.00 = €80.00.
€18,000.00 ÷ €80.00 = 225.

225 units, or €22,500.00 in sales.

Frequently asked questions

What counts as a fixed cost?

A cost that stays the same however much you sell in the period, such as rent, insurance, salaries and loan payments.

What is a variable cost?

A cost that comes with every unit: materials, packaging, shipping, card fees or sales commission.

Why can't the variable cost be higher than the price?

Then every sale loses money, so selling more never covers the fixed costs. Raise the price or lower the cost per unit.

How do I include a profit target?

Add the profit you want to the fixed costs. The result is the number of units that covers the costs and earns that profit.

Should costs and sales cover the same period?

Yes. Monthly fixed costs give a monthly sales target; yearly costs give a yearly target.

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