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Break-Even Calculator
Break-even units & revenue, contribution margin, target-profit units and margin of safety. Accurate, instant and free — for United States.
What these mean:
You break even at 180 units ($8,100.00 in sales). Each unit contributes $15.00 toward fixed costs — a 33.3% contribution margin.
Break-even units
180
Break-even revenue
$8,100.00
Contribution margin
$15.00
CM ratio
33.3%
Where cost meets revenue
Contribution margin does the work
Pair this with the Profit Margin Calculator to price for a target margin, the Markup Calculator to set unit prices, or the ROI Calculator to gauge the return on the fixed investment.
How break-even works
Break-even analysis (cost-volume-profit) finds the sales volume where total revenue equals total cost — the point profit crosses zero. The engine is the contribution margin: the price of one unit minus its variable cost. Each unit sold contributes that amount toward your fixed costs; once they are covered, every further unit's margin is profit.
Contribution margin
price − variable cost
CM = price − variable cost
$45 − $30 = $15 per unit (a 33.3% CM ratio).
Break-even
fixed ÷ contribution margin
units = fixed costs ÷ CM
$2,700 ÷ $15 = 180 units ($8,100 in sales).
- 1Why fixed-cost cuts move it less than you think: Raising the price by just $5 (to $50) lifts the contribution margin to $20 and drops break-even to 135 units — a 25% fall. Cutting $5 of fixed cost only moves it by ~0.3 units. The margin is the lever.
- 2Take it further: Set the unit price for the margin you need with the Markup Calculator or the Profit Margin Calculator.
Target profit & margin of safety
Break-even is the floor, not the goal. Two extensions turn it into a planning tool: the volume needed for a target profit, and the margin of safety— the cushion between today's sales and the break-even line.
Target profit
(fixed + profit) ÷ CM
To add a $3,000 profit on top of $2,700 fixed costs at a $15 margin: (2,700 + 3,000) ÷ 15 = 380 units.
Margin of safety
(actual − BEP) ÷ actual
Selling 250 units against a 180-unit break-even: (250 − 180) ÷ 250 = 28%. Sales could fall 28% before a loss.
No break-even when CM ≤ 0
Frequently asked questions
The break-even point is the sales volume at which total revenue exactly equals total costs, so profit is zero. Below it you make a loss; above it you make a profit. In units it is fixed costs ÷ contribution margin per unit. For $2,700 of fixed costs and a $15 contribution margin, break-even is 2,700 ÷ 15 = 180 units, or $8,100 in sales.
Contribution margin is the selling price minus the variable cost of one unit — the amount each sale "contributes" toward covering fixed costs. At a $45 price and $30 variable cost the contribution margin is $15 (a 33.3% CM ratio). Break-even is driven entirely by this number: fixed costs ÷ contribution margin. That is why a small price rise or variable-cost cut lowers the break-even point far more than trimming fixed costs.
Add the profit you want to your fixed costs, then divide by the contribution margin: (fixed costs + target profit) ÷ contribution margin. To earn $3,000 on top of $2,700 fixed costs at a $15 margin, you need (2,700 + 3,000) ÷ 15 = 380 units — 200 units beyond the 180-unit break-even.
The margin of safety is how far current (or forecast) sales sit above the break-even point, expressed as a percentage: (actual units − break-even units) ÷ actual units. Selling 250 units against a 180-unit break-even is a (250 − 180) ÷ 250 = 28% margin of safety — sales could fall 28% before you start losing money. A thin margin of safety flags a fragile business.
If the selling price is at or below the variable cost per unit, the contribution margin is zero or negative — every sale loses money on its own, so no volume can ever recover the fixed costs and there is no break-even point. Before break-even analysis makes sense, the price must exceed the variable cost per unit.
No. This tool answers a business/pricing question — how many units cover your costs. The "break-even age" people ask about for retirement is a different calculation about when delaying Social Security or a pension out-earns claiming early. This calculator does not model that; it is about cost-volume-profit for a product or service.
Yes — it is completely free with no sign-up, and every calculation runs entirely in your browser. Nothing you enter is sent to a server or stored.
Method, assumptions & references
Methodology: contribution margin = price − variable cost; break-even units = ⌈fixed costs ÷ contribution margin⌉; break-even revenue = break-even units × price; units for target profit = ⌈(fixed + target profit) ÷ contribution margin⌉; margin of safety = (actual units − break-even units) ÷ actual units. Units are rounded up because a fractional unit cannot be sold. All calculations run client-side; nothing is stored.
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How we calculate this
Reviewed by Reckonist Editorial · Last reviewed 4 July 2026. Figures follow the methods and sources set out in our editorial standards.
Break-even analysis assumes a constant selling price and variable cost per unit and a single product mix. Real businesses face step costs, volume discounts and multiple products. Figures are for planning guidance only and are not financial advice.
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