Break-Even Calculator

What is the break-even point?

The break-even point is where total revenue equals total cost, so you make neither a profit nor a loss. It is found by dividing fixed costs by the contribution margin per unit — the selling price minus the variable cost of one unit. Each unit sold contributes that margin toward covering fixed costs; once they are covered, every additional unit becomes profit. Break-even revenue is simply the break-even units multiplied by the selling price. If the contribution margin is zero or negative, no volume can cover fixed costs and break-even is impossible.