Break-even calculator
Find how many sales cover your fixed costs
Result
Enter your figures to see how many units cover your fixed costs.
Estimate for planning only. This is not tax, legal, accounting or financial advice. Results depend on the figures you enter. Check all numbers, rates and rules with the official source or a qualified professional before relying on them.
The formula
Fixed costs ÷ (price − variable cost). Fixed costs of 1,000, a price of 50 and a variable cost of 30 give a contribution of 20 and a break-even of 50 units.
Why the answer is rounded up
Fixed costs of 1,001 with a price of 50 and a variable cost of 30 need 50.05 units. You cannot sell a fraction of a unit, so the target is 51.
When there is no break-even
If the price is not above the variable cost, each sale adds nothing or loses money. Fixed costs are never covered. The tool shows a notice and no quantity.
Common mistakes
- Mixing monthly and yearly figures.
- Treating your own pay as variable or fixed inconsistently.
- Counting a one-off cost as if it repeated every period.
A note for Canadian businesses
This tool does not add sales tax or income tax.
Questions
What are fixed and variable costs?
Fixed costs stay the same for the period no matter how many units you sell. Variable costs change with each unit or job.
What is contribution margin?
Contribution is price minus variable cost. The margin is that amount as a percentage of the price.
Why round up to whole units?
A fraction of a unit does not cover the remaining fixed costs. The whole-unit target is the smallest whole number that does.
What if the price is lower than the variable cost?
There is no finite break-even. Raise the price or lower the variable cost.
Does it predict how much I will sell?
No. It only says how many units cover the fixed costs you entered.
Can I use jobs instead of units?
Yes. Name what you sell, or leave the name blank and the result says units.
Can I save my scenario?
Saving needs a free account. Without one, your entries stay on this page.