Break-Even Calculator
Find the break-even quantity, revenue and contribution margin ratio from fixed costs, price per unit and variable cost per unit, plus the quantity for a target profit.
What you enter is calculated only in this browser. It is not sent to a server or stored. Results are for reference and are not financial, tax or legal advice.
For reference only. A simple model that assumes constant prices and costs; it does not replace business or investment decisions.
How to use it
- Enter the fixed costs (costs that do not depend on volume), the price per unit and the variable cost per unit (the cost of each item sold).
- Enter a target profit to also get the quantity and revenue needed for it. Leave it blank to calculate break-even only.
- The large number is the break-even quantity (rounded up to a whole number). Below it you see the contribution margin, its ratio and the revenue.
Formulas
Contribution = price - variable cost (per unit). Break-even quantity = fixed costs / contribution, rounded up to a whole number. Revenue = quantity × price. Contribution margin ratio = contribution / price × 100. With a target profit, required quantity = (fixed costs + target profit) / contribution, rounded up. Example: fixed 10,000, price 50, variable cost 30 gives a contribution of 20, 500 units, revenue 25,000 and a 40% ratio. A target profit of 5,000 needs 750 units and revenue of 37,500.
Assumptions and limits
This simple model assumes the price and the variable cost per unit stay constant at any volume and that fixed costs are fixed. It does not include taxes, discounts, inventory or changing costs, so check real numbers and professional advice before relying on it for a business decision. The result is a reference calculation.
FAQ
What is the break-even point?
In this site definition it is the sales quantity at which total revenue equals fixed plus variable costs, so profit is 0. The contribution per unit (price - variable cost) covers the fixed costs at break-even quantity = fixed costs / contribution.
Why is the quantity rounded up?
Items are sold in whole units. With fixed costs of 10,000, a price of 30 and a variable cost of 12, the contribution is 18 and 10,000 / 18 = 555.5556, so profit is 0 or more from 556 units. At 556 units the profit is 556 × 18 - 10,000 = 8. The exact value (555.5556) is shown as well.
What is the contribution margin ratio?
Contribution / price × 100. With a price of 50 and a variable cost of 30, the contribution is 20 and the ratio is 40%: of each additional unit of revenue, 40% goes toward fixed costs or profit.
What if the price is not above the variable cost?
If the price is at or below the variable cost, each sale adds 0 or less in contribution, so no break-even quantity exists and a message is shown instead. Inputs accept up to 15 integer digits and 6 decimals (a limit set by this site).
Sources and check date
This calculator uses plain mathematical definitions and does not rely on an outside reference document.
Date we opened the official documents ourselves: 2026-11-11. Rates, limits and rules can change, so read the original again before an important decision.