Business
Calculator for break-even point
Find units and revenue wey contribution margin need make e cover fixed costs.
Add to workspaceYour 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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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 unit | Units 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.
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
- Calculator for gross margin — margin for each dollar of revenue
- Calculator for profit — net profit after all costs
- Calculator for discount — how lower price dey move the break-even point
Results na estimates; dem no replace advice from qualified professional.