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Calculator for break-even point

Find units and revenue wey contribution margin need make e cover fixed costs.

Add to workspace

Your numbers

Result dey update as you type; no Calculate button dey. All calculation dey run inside your browser.

Units wey you need to break even

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Contribution / unit: —Revenue wey you need to break even: —

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How the result break down

Amount

Every unit sold pass break-even dey add one unit of contribution margin to profit, at these prices and costs.

Quick look at the result

For break-even, di two bars must equal by definition: total contribution cover fixed costs exactly.

Break-even point at different prices

Price for each unitUnits wey you need to break even

Fixed costs and variable cost stay at values above; na only price dey change across rows.

Formula

Break-even units = fixed costs ÷ (unit price − variable cost for each unit). Break-even revenue = break-even units × unit price. Contribution margin for each unit = unit price − variable cost for each unit.

Example wey show the calculation

Fixed costs $50,000, price $200, variable cost $120: contribution margin na $200 − $120 = $80 per unit, so break-even units = $50,000 ÷ $80 = 625 units, and break-even revenue = 625 × $200 = $125,000.

Where e fit work and limits

Price must pass variable cost; otherwise you no go fit break even. This model no include product mix, tax, costs wey jump when capacity limit reach, volume discounts or prices wey change. Na one product at constant price the model dey use.

Version of di formula: 6aa5f8d53244 · Example don get check:

Questions wey people dey ask often

How the break-even calculator dey work?

Break-even units = fixed costs ÷ (unit price − unit variable cost). E dey find sales volume where total contribution exactly pay fixed costs.

Wetin if price lower pass variable cost?

Then every sale dey lose money and no break-even volume dey — selling more only dey deepen loss. Price must cover variable cost before fixed costs fit recover.

Wetin be contribution margin?

Price minus variable cost per unit: amount wey each sale dey contribute toward fixed costs and then profit. Here e na $80 per unit at example values.

Once sales pass break-even point, all the money na profit?

Under these assumptions, yes for every extra unit — but only until stepped costs, capacity limits or price cuts change di situation. For real business, all three inputs rarely stay constant.

Tax dey included?

No. Make you count break-even revenue as revenue before tax, then handle your own tax separately.

This tool fit handle many products together?

No. If you get product mix, you go need weighted-average contribution margin. This calculator dey model one product at one price.

Other tools wey relate to dis

Results na estimates; dem no replace advice from qualified professional.