The break-even calculator below, from The Finance Reveal, shows how many units you must sell to cover your costs: enter your total fixed costs, the price per unit, and the variable cost per unit, and it returns the break-even quantity, the revenue at that point, and your contribution per unit.

What break-even means

The break-even point is where total revenue exactly equals total costs, so you make neither a profit nor a loss. Below it you are losing money; above it you start to profit. It is found by dividing your fixed costs by the contribution each unit makes, which is its price minus its variable cost. It is one of the most important numbers for anyone running or planning a small business.

How to use the result

Use it to sanity-check a product or side hustle before you commit, and to set realistic sales targets. If the break-even quantity looks out of reach, the levers are clear: raise the price, cut the variable cost, or reduce fixed costs. It fits naturally with the thinking in our small business finances guide.

Frequently asked questions

What is the break-even formula?

Break-even units equal fixed costs divided by the contribution per unit, where contribution is the price per unit minus the variable cost per unit. Multiply the units by the price to get break-even revenue.

What is contribution per unit?

It is the amount each sale contributes toward covering fixed costs, calculated as the selling price minus the variable cost of producing that unit. The price must exceed the variable cost for a business to break even at all.

What are fixed and variable costs?

Fixed costs stay the same regardless of how much you sell, such as rent. Variable costs rise with each unit produced, such as materials. Break-even analysis separates the two.

Related calculators and guides

Pair it with the ROI calculator, and read more in our Making Money section. Every tool lives in Financial Tools.