Break-even point calculator
Calculate how many units to sell and how much revenue you need each month to cover all your costs, with contribution margin and margin of safety.
How to useBreak-even point
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Break-even point calculator: what it is for
Enter your monthly fixed costs, selling price, variable cost per unit and taxes. The calculator shows the break-even point in units and in revenue, plus the average per business day.
With your current sales, it shows whether the business is making a profit or a loss and the margin of safety. It also calculates how much to sell to reach a target profit.
How to use
- Enter the fixed costs, price and variable cost.
- Enter taxes and, if you want, current sales and target profit.
- See the break-even point and margin of safety.
When to use it
- Planning a new business.
- Setting sales targets for the team.
- Checking whether a price covers costs.
Frequently asked questions
What is the break-even point?
It's the revenue at which the business makes neither a profit nor a loss: sales cover exactly the fixed and variable costs. Above it, profit begins.
What's the formula?
Break-even in units = fixed costs ÷ unit contribution margin, where the margin is the selling price minus the variable cost of each unit.
Is it really free?
Yes, 100% free. No sign-up, no subscription and no usage limits. All Tools123 tools are free and run right in your browser.