⚖️ Break-Even Calculator
Find the exact number of units you must sell — and the revenue you must generate — for your business to cover all its costs and break even.
Enter your values
- Break-even revenue€25,000.00
- Contribution margin per unit€10.00
- Contribution margin ratio40%
- Units to hit target profit1,000
What this means
- Break-even point: 1,000 units generating €25,000.00 in revenue.
- Contribution margin: €10.00 per unit (40% of price).
- Each unit sold contributes €10.00 toward fixed costs and profit.
Visual results
Detailed breakdown
| Units | Revenue | Total costs | Profit / Loss |
|---|---|---|---|
| 100 | €2,500.00 | €11,500.00 | -€9,000.00 |
| 200 | €5,000.00 | €13,000.00 | -€8,000.00 |
| 300 | €7,500.00 | €14,500.00 | -€7,000.00 |
| 400 | €10,000.00 | €16,000.00 | -€6,000.00 |
| 500 | €12,500.00 | €17,500.00 | -€5,000.00 |
| 600 | €15,000.00 | €19,000.00 | -€4,000.00 |
| 700 | €17,500.00 | €20,500.00 | -€3,000.00 |
| 800 | €20,000.00 | €22,000.00 | -€2,000.00 |
| 900 | €22,500.00 | €23,500.00 | -€1,000.00 |
| 1,000 | €25,000.00 | €25,000.00 | €0.00 |
About this calculator
What the Break-Even Calculator Does
The break-even calculator finds the exact sales volume at which your total revenue equals your total costs — the point where you stop making a loss and start making a profit. Enter your fixed costs, variable cost per unit, and selling price, and the calculator instantly tells you how many units you must sell to break even, what revenue that represents, and how each unit sold contributes to covering your overhead.
You can also enter an optional target profit to find the higher sales volume needed to reach a specific profit goal beyond zero.
The Formula
Contribution margin per unit = Selling price per unit − Variable cost per unit
Break-even units = Fixed costs ÷ Contribution margin per unit (rounded up to the next whole unit)
Break-even revenue = Break-even units × Selling price per unit
Contribution margin ratio = (Contribution margin ÷ Selling price) × 100
Units to hit target profit = (Fixed costs + Target profit) ÷ Contribution margin per unit (rounded up)
The contribution margin is the engine of the analysis. It represents the portion of each sale that remains after paying the variable cost — money available first to cover fixed costs, then to generate profit.
How to Interpret the Results
- Break-even units is the minimum sales volume your business must reach to avoid a loss. Selling one unit fewer means a loss; one unit more means profit.
- Break-even revenue translates units into a monetary target, which is often more intuitive for revenue planning.
- Contribution margin ratio shows the profitability efficiency of your pricing. A 40% ratio means €0.40 of every euro in sales goes toward fixed costs and profit after covering variable costs.
- Units for target profit extends the analysis: if you need €5,000 in profit, you can see exactly how many more units that requires beyond the break-even point.
- The Revenue vs Total Costs chart visualises the crossover point directly. The gap between the revenue and cost lines to the right of the crossover is your profit zone.
Common Use Cases
New product pricing — Before launching, set a provisional price and variable cost estimate. The calculator shows whether a realistic sales volume can realistically cover your fixed overhead.
Rent and lease decisions — Fixed rent is one of the largest inputs. Model how a rent increase shifts your break-even point upward to assess whether the location is financially justified.
Promotional discounts — Lowering the price reduces the contribution margin and raises the break-even point. Quantify exactly how many additional units a discount requires to remain profitable.
Business plan validation — Investors and lenders expect to see break-even analysis. Use this calculator to produce defensible numbers for your financial projections.
Cost-reduction decisions — Compare scenarios: negotiate variable costs down by €1 per unit and see how many fewer units you need to sell. Combine with the ROI Calculator to assess the return on efficiency investments.
Frequently asked questions
What does the break-even point mean?
The break-even point is the sales volume at which total revenue exactly equals total costs — fixed plus variable. Below it you make a loss; above it you make a profit. It is the minimum target every business must exceed to be viable.
What is the contribution margin?
The contribution margin is the selling price minus the variable cost per unit. It shows how much each unit sold contributes to covering fixed costs. Once all fixed costs are covered, each additional unit contributes directly to profit.
How can I reduce my break-even point?
You can lower the break-even point in three ways: raise the selling price, cut variable costs per unit (e.g. negotiate supplier prices or improve efficiency), or reduce fixed costs (e.g. renegotiate rent or reduce overhead). Even a small improvement in contribution margin can significantly reduce the units required.