Calculate break-even point in units and revenue. Find contribution margin, margin of safety, and profit at current sales volume for any business.
Monthly or annual fixed costs (rent, salaries, insurance, etc.)
Cost to produce or deliver each unit (materials, labor, etc.)
Optional: your current or projected sales volume
Enter values above to see results
Break-Even Units = Fixed Costs ÷ (Selling Price − Variable Cost Per Unit)Contribution MarginSelling Price − Variable Cost Per UnitBreak-Even UnitsFixed Costs ÷ Contribution MarginBreak-Even RevenueBreak-Even Units × Selling PriceMargin of SafetyCurrent Units − Break-Even UnitsThe contribution margin is the amount each unit sold contributes toward covering fixed costs and generating profit. Once fixed costs are fully covered (at the break-even point), every additional unit sold generates pure profit equal to the contribution margin.
Break-even analysis is the first financial test every business idea must pass. Before launching a product, expanding operations, or setting prices, you need to know: how many units do I need to sell just to cover my costs? This break-even calculator gives you the answer instantly, along with contribution margin, margin of safety, and profitability analysis.
Enter your total fixed costs (rent, salaries, overhead), variable cost per unit (materials, direct labor), and selling price per unit. Optionally, enter your current or projected sales volume to see your margin of safety and actual profit. The calculator shows break-even in units and in dollars with a complete step-by-step breakdown.
This calculator is used by entrepreneurs validating business ideas, managers evaluating pricing decisions, financial analysts modeling business scenarios, and students learning cost-volume-profit relationships. The contribution margin and margin of safety outputs add depth beyond a simple break-even number.
A common mistake is classifying fixed costs as variable or vice versa. Fixed costs (rent, salaries, insurance) don't change with production volume. Variable costs (materials, packaging, sales commissions) scale directly with units produced or sold. Misclassifying costs leads to an incorrect break-even calculation. Also, remember that break-even analysis assumes a single product or a constant sales mix.
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