Find how many units you need to sell before revenue covers fixed and variable costs, with the crossover shown on a chart. Free.
The break-even point is the number of units you have to sell before the money coming in covers everything going out. Below it you make a loss. Above it you make a profit.
Costs split into two kinds. A fixed cost is paid whether or not you sell anything: rent, salaries, a subscription. A variable cost is what one more unit costs you: materials, packaging, a sales fee.
Break-even quantity = fixed cost / (selling price - variable cost)
The page reports four figures. Contribution per unit is the price minus the variable cost. Exact break-even quantity is the raw division, decimals and all. Break-even quantity is that figure rounded up, because a part unit does not cover its share. Break-even revenue is the rounded quantity multiplied by the selling price.
The selling price must be greater than the variable cost. If it is not, every extra sale widens the loss and no quantity ever covers the fixed cost. The calculator says Selling price must be greater than variable cost per unit. and stops.
Amounts follow the currency and the number format you choose in settings. The calculation runs in your browser.
Each unit contributes 600.00. The exact break-even quantity is 833.33, so the break-even quantity is 834 units and the break-even revenue is 1,251,000.00.
Unit 834 is the first one that leaves the business ahead.
Each unit contributes 75.00. The exact break-even quantity is 1,600.00, the break-even quantity is 1,600 units and the break-even revenue is 400,000.00.
Nothing is rounded here. The division comes out whole, so the exact figure and the quantity match.
Because rounding down leaves the fixed cost uncovered. In the first example the exact figure is 833.33. Round that to 833 and the business is still short. The calculator always rounds up, and it shows the exact figure on its own line so you can see how close you were.
It is what one sale leaves behind after paying its own variable cost. At a price of 1,500 and a variable cost of 900 the contribution is 600.00. Every fixed cost you carry is divided by that number, so a small change to it moves the break-even point a long way.
It rises quickly. Drop the price in the first example from 1,500 to 1,350 and the contribution falls from 600.00 to 450.00. The exact quantity goes from 833.33 to 1,111.11, the break-even quantity from 834 to 1,112, and the required revenue from 1,251,000.00 to 1,501,200.00. A tenth off the price adds a third to the units.
The break-even point falls. Take the variable cost in the first example from 900 to 800 and the contribution rises to 700.00. The exact quantity drops to 714.29, the break-even quantity to 715 units, and the revenue to 1,072,500.00.
No. There is no account, nothing you type is sent to a server, and no result is written down. The page works with no internet connection.
A fixed cost is only fixed inside a range. Add 60,000 of rent to the first example and the break-even quantity moves from 834 to 934 units, with revenue of 1,401,000.00.
The calculator applies no tax of its own. If your selling price includes a tax, take it out before you type the price in. The GST Calculator separates the two. For the growth side of a plan rather than the cost side, use the Compound Interest Calculator.