How is the break-even point calculated?

Break-even units = fixed costs ÷ (price per unit − variable cost per unit). The denominator is the contribution margin: the amount each sale contributes toward covering fixed costs once its own variable cost is paid.

What is the contribution margin?

Contribution margin is the selling price minus the variable cost per unit. It is the money each unit contributes to fixed costs and profit. As a percentage it is contribution ÷ price, which tells you how much of every sale is left after variable costs.

How do I find units for a target profit?

Add the target profit to your fixed costs, then divide by the contribution margin: units = (fixed costs + target profit) ÷ (price − variable cost). The calculator does this automatically when you enter a target profit.

What if the variable cost is above the price?

Then every unit loses money and you can never break even at that price — the contribution margin is zero or negative. The calculator flags this so you know to raise the price or cut the variable cost.

Is my business data private?

Completely. Every figure is calculated inside your browser and nothing you enter is sent to a server or stored.

What is the Break-Even Point Calculator?

Free break-even point calculator. Enter your fixed costs, price per unit and variable cost per unit to see how many units and how much revenue you need to break even, plus the units required to reach a target profit. Runs entirely in your browser — nothing is uploaded. It runs free in your browser on Gera Tools, with nothing uploaded.

Break-Even Point Calculator

Name: Break-Even Point Calculator
Creator: Gera Tools
License: https://creativecommons.org/licenses/by/4.0/

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Break-even point calculator — the volume that turns a profit

Before launching a product or setting a price, you need to know how many units you must sell just to cover your costs. This calculator finds that break-even point from three numbers — fixed costs, price per unit and variable cost per unit — and also shows how many units it takes to reach a profit target.

How it works

The engine is the contribution margin: price − variable cost, the money each sale leaves after its own variable cost. Break-even is fixed costs ÷ contribution margin. For a profit target, add the target to fixed costs first: (fixed costs + target profit) ÷ contribution margin.

Worked example

Fixed costs of 5,000, a price of 25 and a variable cost of 10 per unit:

Contribution margin: 25 − 10 = 15 per unit (60% of the price)
Break-even: 5,000 ÷ 15 = 334 units (rounded up)
Break-even revenue: 334 × 25 = 8,350
To make 3,000 profit: (5,000 + 3,000) ÷ 15 = 534 units

Practical tips

Push the contribution margin, not just the price. Cutting the variable cost by 1 raises the contribution margin the same as adding 1 to the price — either lowers the break-even volume.

Separate fixed from variable carefully. Rent and salaries are fixed; materials, payment fees and shipping usually scale with each unit. Misclassifying them distorts the break-even.

Use it to sanity-check a price. If the break-even volume is more than you could realistically sell, the price is too low or the fixed costs too high — this tool makes that visible before you commit.

All calculations run entirely in your browser — nothing is uploaded or stored.