Break-Even Point Calculator
Find the point where your revenue equals your costs.
Business Costs
Break-Even Point
Units to Sell
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Sales Revenue
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Understanding Your Break-Even Point
The break-even point is a crucial milestone for any business. It's the point at which your total revenue is exactly equal to your total costs (both fixed and variable). In other words, it's the moment you stop losing money and start making a profit. Any sales beyond this point contribute to your profit.
The Formula
Break-Even Point (in Units) = Total Fixed Costs / (Sale Price Per Unit - Variable Cost Per Unit)
The denominator, (Sale Price - Variable Cost), is known as the Contribution Margin Per Unit. It's the amount each sale contributes towards covering your fixed costs and then generating profit.