Free break-even point calculator

Use our simple break-even calculator to find out how much you need to sell to cover your costs. Knowing your break-even point helps you price better and plan for profit.

Fixed Cost

Variable Cost Per Unit

Price per Unit

Break Even Point

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What is a break-even analysis?

Break-even analysis is the process of calculating the point at which your business covers all costs and starts making a profit. It takes into account your fixed costs, variable costs, price per unit, and the number of units sold. Performing a break-even analysis helps businesses make informed decisions on pricing, cost control, and sales targets.

What you need to know?

It helps you determine how many units you need to sell (or how much revenue you need to earn) to cover all your costs and start making a profit.
Your break-even point is influenced by fixed costs, variable costs per unit, and your selling price. Even small changes to these can shift your profitability.
Once you cross the break-even point, every additional sale contributes directly to profit, making it easier to plan pricing, promotions, and growth strategies.

How is break-even point calculated?

Break-even point is the point where your total revenue equals your total costs. Here are the two common ways to calculate it.

Break Even Point (Units) =

Fixed cost

(Price per unit - variable cost per unit)

Break even Point (Price) =

(Fixed cost + Total variable cost)

Number of units

How can the break-even point help your business?

Feasibility

Break-even analysis helps you identify when your business will start making profits. It enables you to plan timelines, pricing, and activities needed to reach that point.

Analysis

Market changes can affect costs and sales. Break-even analysis shows how pricing adjustments impact recovery time and helps you understand how long it’ll take to cover losses.

Strategy

Use break-even insights to build smarter strategies. Whether it's promotions, cost control, or product launches, test different variables to see how many units you need to sell and make better business decisions.

Frequently asked questions

Fixed costs are business expenses that remain constant regardless of production volume or sales. Common examples of fixed costs include rent, insurance premiums, and salaries. Understanding fixed costs is essential for accurate break-even analysis and long-term financial planning.
Variable costs are expenses that change based on your production volume or sales activity. These costs are calculated per unit, so the more you produce or sell, the higher your variable cost. Common examples include sales commissions, delivery charges, and temporary labour wages.
Knowing your break-even point helps you: Set the right pricing strategy, Plan sales targets, Control costs and Evaluate profitability before launching a product

Simplify inventory and order management for your business

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Break-even Point Calculator