Budgeting & Income

Break-Even Calculator

The break-even point is where sales exactly cover costs — the moment a business stops losing money and starts making it. Enter your fixed costs, price, and per-unit cost to see how many units and how much revenue you need to break even.

Formula shown below · Tested against worked examplesHow we verify

Fixed costs (per period)

Rent, salaries, insurance — costs that don't change with sales.

Price per unit

Variable cost per unit

Materials, shipping, payment fees — costs per item sold.

Units to break even

2,000

Sell this many to cover all fixed costs.

Break-even revenue: $80,000
Contribution margin per unit: $25.00
Contribution margin: 62.5%

Compare scenariosTry three values of one input

Vary

Break-Even Calculator results for three values of Fixed costs (per period)
Fixed costs (per period)
Units to break even	1,800	2,000+200	2,200+400
Break-even revenue	$72,000	$80,000+$8,000	$88,000+$16,000

Every other input stays at the value you set above — currently $50,000 for fixed costs (per period). Differences are measured against the first column.

Saved scenariosSave this calculation

Name this scenario

Saved in this browser only — no account, and nothing is sent to us. Clearing your browser data deletes them.

How this calculator works

Contribution margin = price − variable cost per unit. Break-even units = fixed costs ÷ contribution margin (rounded up, since you can't sell a fraction of a unit). Break-even revenue = units × price. When the margin is zero or negative, there's no break-even point.

This is a single-product model at one price. Real businesses have multiple products, changing costs, and step-changes in fixed costs as they scale — treat the result as a planning baseline.

Formula

Units = Fixed ÷ (P − V)

Contribution margin = P − V
Break-even revenue = Units × P

Fixed: Total fixed costs over the period
P: Price per unit
V: Variable cost per unit

Undefined when the contribution margin is zero or negative — at or below variable cost, no volume reaches break-even. The calculator returns nothing rather than a misleading figure.

What this assumes

Fixed costs stay fixed across the volume range shown. In reality they step up — another shift, another machine.
A constant price per unit, with no volume discounts or promotions.
Variable cost per unit is constant, which understates the effect of buying better at scale.

What changes this number

Contribution margin: Price minus variable cost. The whole break-even is fixed costs divided by it, so a small price change moves the volume sharply.
Fixed costs: Move the break-even proportionally, and are the part a business can renegotiate.
Price: Affects the margin directly, which is why a discount needs a surprisingly large volume increase to pay for itself.

A worked example

Take the product business scenario. These figures are produced by the calculator above, not written alongside it, so they always match what the tool returns.

What you enter

Fixed costs (per period): $50,000
Price per unit: $40
Variable cost per unit: $15

What it returns

Units to break even: 2,000
Break-even revenue: $80,000
Contribution margin per unit: $25.00
Contribution margin: 62.5%

Sources

This calculator uses no external data — the result follows entirely from the formula above and the values you enter, so there is nothing to cite beyond the arithmetic.

Calculator last reviewed August 9, 2026. How we verify

Try an example

Product business Low-margin, high-volume Service with high fixed costs

Frequently asked questions

How do you calculate the break-even point?

Break-even units = fixed costs ÷ (price per unit − variable cost per unit). The denominator is your contribution margin — what each sale adds toward covering fixed costs. $50,000 in fixed costs at a $25 margin per unit means you break even at 2,000 units.

What's the difference between fixed and variable costs?

Fixed costs stay the same regardless of how much you sell — rent, salaries, insurance, software. Variable costs rise with each sale — materials, packaging, shipping, payment processing. Only variable costs are subtracted from price to get your per-unit margin.

Why does break-even matter?

It tells you the minimum sales you need just to avoid losing money, which frames every pricing and cost decision. A lower break-even — from a higher price, lower costs, or better margins — means less risk and a faster path to profit.

ROI Calculator

Measure the return on any investment: total gain, total return (ROI), and the annualized return (CAGR) that lets you compare deals held for different lengths of time.

50/30/20 Budget Calculator

Split your after-tax income the 50/30/20 way — needs, wants, savings — with monthly dollar targets and the yearly savings it produces.

Net Worth Calculator

Calculate your net worth the way advisors do: everything you own minus everything you owe, with your debt-to-asset ratio as a health check.

Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.