Break-Even Point Calculator
Calculate when your business becomes profitable by analyzing fixed costs, variable costs, and pricing.
Calculate Break-Even Point
Enter your business costs and pricing to find your break-even point
Break-Even Result
Enter your costs
to see break-even point
Break-Even Analysis Chart
Interactive Break-Even Chart
Visual representation of your break-even point showing costs, revenue, and profit zones
Business Insights & Strategies
Reduce Fixed Costs
Lowering fixed costs decreases your break-even point, making profitability easier to achieve.
Increase Prices
Higher prices increase contribution margin, reducing the number of units needed to break even.
Lower Variable Costs
Reducing production costs per unit improves margins and lowers break-even volume.
Break-Even Calculator FAQs
What is a break-even point?
The break-even point is where total revenue equals total costs (both fixed and variable). At this point, the business is neither making a profit nor incurring a loss.
How is break-even point calculated?
Break-even point in units = Fixed Costs ÷ (Price per Unit - Variable Cost per Unit). Break-even revenue = Break-even units × Price per Unit.
What's the difference between fixed and variable costs?
Fixed costs remain constant regardless of production volume (rent, salaries). Variable costs change with production volume (materials, commissions).
What is contribution margin?
Contribution margin is the amount each unit contributes to covering fixed costs and generating profit. It's calculated as Price - Variable Cost per Unit.
How can I use break-even analysis for decision making?
Break-even analysis helps in pricing decisions, cost control, sales target setting, and evaluating the financial viability of new products or business ventures.