Break Even Calculator

The break-even point is the number of units you need to sell so that revenue exactly covers all costs (fixed + variable). Beyond that point, every sale generates profit.

Fixed costs do not change with production volume (rent, salaries, insurance). Variable costs increase proportionally with production (raw materials, packaging, commissions).

It is the difference between the selling price and the unit variable cost. It represents how much each unit sold contributes to covering fixed costs and, once covered, to generating profit.

Total fixed costs, such as rent, wages, utilities and insurance, the variable cost per unit, such as materials and direct labour, and the selling price of one unit.

When the selling price does not exceed the variable cost per unit, the contribution margin is zero or negative, no break even point exists and the calculator says so with a warning.

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