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Break-Even Point Calculator

Find your break-even units and revenue — how many sales you need before fixed and variable costs are covered and profit begins.

Updated July 2026 · Editorial standards

Units to break even
286 units
Break-even revenue
$17,160
Contribution margin / unit
$35
Profit at current units$500Margin of safety5%Contribution margin58.3% of price

Your details

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Key figures

Break-even units
286 units
Break-even revenue
$17,160
Contribution margin
$35
Profit at current units
$500

At $60 per unit you need 286 sales to break even ($17,160 revenue). Your current 300 units yield $500 profit.

Revenue vs total cost

Margin of safety

At riskStrong
At risk5% margin of safety

Contribution margin is $35/unit (58.3% of price). You are 5% above break-even.

Break-even units
286 units
By KalkWiseVerified against official sources Updated July 2026

What is the break-even calculator?

In short

The break-even point is where total revenue equals total costs. Formula: Break-even units = Fixed Costs ÷ (Price − Variable Cost). Example: $5,000 in fixed costs, a $35 price, and $15 variable cost per unit gives a $20 contribution margin — so you need 250 units/month ($8,750 in revenue) just to break even.

This break-even calculator finds how many units you need to sell and the revenue required before your business becomes profitable. Enter your fixed costs, variable cost per unit, and selling price to see break-even units, break-even revenue, and a profit/loss chart across a range of sales volumes.

How to use this calculator

  1. 1Enter your total monthly or annual fixed costs (rent, salaries, software, etc.).
  2. 2Enter the variable cost per unit (materials, labor, shipping per item).
  3. 3Enter your selling price per unit.
  4. 4Optionally enter a target profit to see the sales volume required for that profit.
  5. 5Review break-even units, revenue, contribution margin, and the P&L chart.

The formula

BEP=Fixed CostsSP−VC
Revenue=BEP×SP
Break-even units = Fixed Costs ÷ (Selling Price − Variable Cost per Unit). Break-even revenue = Break-even units × Selling Price.
BEP
— Break-even point in units
FC
— Total fixed costs
SP
— Selling price per unit
VC
— Variable cost per unit
CM
— Contribution margin = SP − VC

Worked example

The scenario

An online shop has $5,000/month in fixed costs (rent, software, salaries). Each product costs $12 to make and ships for $3 (total $15 variable cost). It sells for $35.

gives

The result

Contribution margin = $35 − $15 = $20. Break-even units = $5,000 ÷ $20 = 250 units/month. Break-even revenue = 250 × $35 = $8,750/month.

Common use cases

  • Determining the minimum sales volume needed before launching a new product
  • Setting pricing to ensure profitability at an achievable sales target
  • Evaluating whether a cost-reduction initiative improves the break-even point
  • Analyzing the impact of a price increase or decrease on profitability
  • Preparing a business plan with realistic profit projections for investors

Limitations & assumptions

  • Assumes a single product or a constant sales mix — multi-product businesses require a weighted average contribution margin.
  • Fixed costs may not stay truly fixed at all volume levels (step costs).
  • Does not account for taxes, depreciation, or working capital requirements.
  • Revenue and costs are assumed to be linear, which may not hold at high volumes.

Frequently asked questions

The break-even point is the level of sales at which total revenue equals total costs — you are neither profitable nor losing money. For example, with $10,000 in monthly fixed costs and a $50 contribution margin per unit, you break even at 200 units. Every unit sold above break-even contributes to profit at the contribution margin rate, making it a fundamental concept for pricing, planning, and evaluating whether a venture is viable.

Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.