Find how many units you need to sell — or how much revenue you need — to cover all your costs. Includes margin of safety, what-if scenarios, and profit zone visualization.
Your Numbers
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Materials, labor, shipping per unit
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Rent, salaries, insurance, software — costs that don't change with sales volume
How many units you currently sell per period
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How much profit do you want to make on top of break-even?
Break-Even Results
Break-Even Units
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Break-Even Revenue
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Contribution Margin
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Contribution Margin %
0%
Profit Zone
📉 Loss Zone
📈 Profit Zone
Break-Even
📊 Margin of Safety
Units Above Break-Even
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Margin of Safety %
0%
Current Profit/(Loss)
$0
Profit Margin
0%
Current volume vs break-even
🎯 To Reach Your Target Profit
Units Needed
0
Revenue Needed
$0
What-If Scenario Planner
See how changes in price, costs, or volume affect your break-even point.
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Sensitivity Table
Break-even units at different price and variable cost combinations.
What Is a Break-Even Point?
Also searched as: break even calculator | breakeven point calculator free | break even analysis calculator | how to calculate break even point Optimized for US users with American units and terminology.
The break-even point is the level of sales at which total revenue exactly equals total costs — you make no profit and suffer no loss. Every unit sold above break-even contributes pure profit. Below break-even, you're running at a loss. Understanding your break-even is essential for pricing decisions, capacity planning, and assessing business risk.
The formula is: Break-Even Units = Fixed Costs ÷ Contribution Margin per Unit, where Contribution Margin = Selling Price − Variable Cost per Unit.
Contribution Margin Explained
The contribution margin is what each unit "contributes" toward covering fixed costs — and eventually toward profit. If your price is $50 and variable cost is $20, the contribution margin is $30. That means every unit sold chips away $30 at your fixed costs. Once fixed costs are fully covered, each unit sold contributes $30 directly to profit.
Margin of Safety
The margin of safety tells you how far your actual sales can fall before you hit break-even. If you're selling 600 units and break-even is 500, your margin of safety is 100 units or 16.7%. A higher margin of safety means your business can withstand a larger revenue decline before becoming unprofitable.
Use the Break-Even Calculator above — enter your values and get instant results. This free online tool calculates how to calculate break even point without any download or signup required. Results update in real time as you type.
Use the Break-Even Calculator above — enter your values and get instant results. This free online tool calculates break even analysis formula without any download or signup required. Results update in real time as you type.
Fixed costs stay the same regardless of how many units you sell — rent, salaries, insurance, software subscriptions. Variable costs change directly with volume — raw materials, packaging, shipping, sales commissions. The more you sell, the higher total variable costs, but fixed costs don't change.
Three ways: increase your selling price (raises contribution margin), reduce variable costs per unit (raises contribution margin), or reduce fixed costs. The most powerful lever depends on your business — use the What-If Scenario Planner above to model the impact of each change.
Generally, a margin of safety above 25% is considered healthy — it means sales could drop 25% before you break even. Under 10% is risky, especially for businesses with seasonal demand or high fixed cost structures. The right number depends heavily on industry and business model.
Yes. For service businesses, the "unit" might be an hour of service, a client, a project, or a subscription. Variable costs include the labor cost per hour or per client. The same break-even formula applies — you're just counting hours or clients instead of physical products.