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Break Even Point calculator
Break-Even Point Pro
Advanced profitability threshold and target profit modeling
Unit Economics
$
$
$
Profit Target
$
Calculate exactly how many units you need to sell to not just break even, but hit your specific profit goal.
Target Units
0
To Reach Profit Goal
Break-Even Point
0 Units
Target Revenue
$0.00
Unit Contribution
$0.00
Strategic Insight:
About the Break Even Point calculator
Find how many units you must sell to cover your costs, and how many you need to reach a profit target.
How to use the Break Even Point calculator
- Enter your Fixed Costs, the Price Per Unit and the Variable Cost / Unit.
- Optionally enter a Desired Profit ($).
- Press Generate Profitability Analysis.
Formula and method
Break-even units = Fixed costs ÷ (Price − Variable cost). For a profit target, use (Fixed costs + Desired profit) ÷ (Price − Variable cost).
Worked example
Fixed costs of $10,000, a $50 price and $30 variable cost need 500 units to break even, or 750 units to earn $5,000 profit.
Units to break even. With fixed costs of 10,000, a selling price of 50 and a variable cost of 30 per unit, each sale contributes 20. Break-even = 10,000 ÷ 20 = 500 units, or 25,000 in sales.
When to use the Break Even Point calculator
- Working out how many units or how much revenue a new product needs to cover its costs.
- Testing how a price change alters the break-even point.
- Preparing a simple business plan or loan application.
Common mistakes to avoid
- Leaving out fixed costs such as rent, salaries and insurance.
- Treating a semi-variable cost as fully fixed or fully variable.
- Assuming you will sell the break-even quantity in the first month.
Tips
- Raising the price or cutting variable cost lowers the break-even point fastest.
- Review your fixed costs every quarter.
Frequently Asked Questions
The price minus the variable cost per unit. It is the amount each sale contributes towards fixed costs and profit.
The selling price minus the variable cost per unit. It is the amount each sale contributes to covering fixed costs.
Raise the price, cut variable costs or reduce fixed costs.