Break-Even Point Calculator for Pricing and Costs
Break-Even Point Calculator
This calculator estimates the sales level where your business covers its costs. Enter your fixed costs, selling price, and variable cost per unit to calculate break-even in units and in sales value.
What break-even means
Break-even is the point where total contribution from sales equals your fixed costs. Below that point you operate at a loss, and above it you begin generating profit.
Formulas used
Contribution margin per unit:
\( CM = P - V \)
Break-even units:
\[ Q_{BE} = \frac{F}{CM} \]
Break-even sales:
\( S_{BE} = Q_{BE} \cdot P \)
Units needed for a target profit (advanced):
\[ Q_{TP} = \frac{F + \Pi}{CM} \]
Where \( P \) is the selling price per unit, \( V \) is the variable cost per unit, \( F \) is fixed costs, and \( \Pi \) is the profit target.
How to interpret the scenario table
The table shows multiple sales levels around break-even so you can see how profit changes as units sold increase or decrease. If you enable Target profit in advanced options, the table also adds a dedicated target-profit scenario row.
Practical tips
- Keep currency consistent across all fields.
- Match time periods: if fixed costs are monthly, interpret results as monthly targets.
- Include all per-unit costs in variable cost (fees, packaging, delivery, etc.).
Limitations
This model assumes one product, one price, and one variable cost per unit. Discounts, taxes, multiple products, and capacity limits can shift real-world break-even results.