Break-Even Calculator — Bustech.site

Business Tool / Break-Even

Break-Even Calculator

Know Exactly How Many Sales Cover Your Costs

Enter your fixed costs, variable cost per unit and selling price to see how many units — and how much revenue — you need to break even.

Simple numbers. Clear decisions.

Calculate Your Break-Even Point

Break-Even Point

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Enter your costs and selling price to see results.

Break-Even Revenue
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Contribution / Unit
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Contribution Ratio
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What Each Sale Covers, at Break-Even

Enter your costs and selling price above to see the breakdown here.

What Does Break-Even Point Actually Tell You?

Your break-even point is the moment your sales stop covering just your costs and start becoming profit. Below it, every unit sold still leaves you short; above it, every extra unit adds directly to your bottom line.

Fixed Costs
Costs that stay the same regardless of how much you sell — rent, salaries, subscriptions.
Variable Cost
The cost that changes with each unit — materials, packaging, per-order fees.
Contribution Margin
Selling price minus variable cost — what each sale contributes toward fixed costs.

Break-Even in Units and in Revenue Are Not the Same

Fixed Costs = $2,000
Variable Cost = $10 / unit
Selling Price = $30 / unit

Break-Even Units

100

$2,000 ÷ ($30 − $10)

Break-Even Revenue

$3,000

100 units × $30

Units tell you how many sales you need to make; revenue tells you how much money needs to come in. They describe the same break-even point from two angles — units are more useful for production planning, revenue is more useful for cash flow and sales targets.

Where This Number Helps

  1. New Products

    Check how many units you’d realistically need to sell before launching.

  2. Startups

    Understand the sales volume needed to cover fixed running costs each month.

  3. Pricing Decisions

    See how a price change shifts your break-even point before you commit to it.

  4. Services

    Work out how many clients or projects are needed to cover overheads.

Quick Example

Fixed Costs
$2,000
Variable Cost
$10
Selling Price
$30
Break-Even
100 units

How Your Result Is Calculated

Selling Price—
− Variable Cost—
= Contribution Margin—
Fixed Costs ÷ Contribution Margin—
= Break-Even Units—

Frequently Asked Questions

What is a break-even point?

The break-even point is the number of units, or the amount of revenue, at which your total sales exactly cover your total costs — with no profit and no loss.

How do I calculate my break-even point?

Divide your fixed costs by your contribution margin per unit, which is your selling price minus your variable cost per unit. The result is the number of units you need to sell to break even.

What is contribution margin?

Contribution margin is what’s left from each sale after variable costs are covered — the amount each unit contributes toward paying off your fixed costs.

What if my selling price is lower than my variable cost?

If your selling price doesn’t cover your variable cost per unit, each sale loses money before fixed costs are even considered, so no volume of sales can reach break-even at that price.

Is a lower break-even point always better?

Generally a lower break-even point means less risk, since you need fewer sales to cover your costs — but the right target depends on your fixed costs, pricing strategy and how much volume your market can realistically support.