ToolDingo

Break-Even Calculator

Calculate the units and revenue needed to cover fixed costs from price and variable cost per unit.

This selection sets the currency unit only; amounts are not converted using exchange rates.
USD
USD
USD
USD

From contribution to break-even

Contribution per unit is selling price minus variable cost per unit. It must be positive before sales can cover fixed costs. The calculator rounds the mathematical threshold up to the next whole sellable unit.

Plan break-even and target profit

Enter fixed costs, price, variable cost, and an optional target profit. The result shows break-even units and revenue as well as the units and revenue required for your profit target.

What is not included

The model assumes a constant price and constant variable unit cost. Multiple products require a reliable sales mix; inventory changes, payment timing, and liquidity are outside this calculation.

Frequently Asked Questions

What is the break-even point?
At break-even, revenue exactly covers the fixed and variable costs entered. The calculator rounds the required quantity up to whole units.
How is the break-even quantity calculated?
Fixed costs are divided by contribution per unit. Contribution per unit is the selling price minus variable cost per unit.
Why must the selling price exceed variable cost?
Only a positive contribution can cover fixed costs. If contribution is zero or negative, selling another unit does not move the business toward break-even.
What does contribution margin mean?
It shows the share of the selling price left after variable cost to cover fixed costs and then profit.
How is a target profit included?
The target profit is added to fixed costs. That total is divided by contribution per unit and rounded up to whole units.
Can I calculate several products together?
This calculator models one product or one consistent average case. Multiple products require a reliable weighted average of prices and variable costs.