Break-even Calculator

Find out how many units you need to sell to cover all costs — and when profit begins

Enter Cost Details

Rent, salaries, insurance, depreciation — costs that don't change with output

Raw materials, packaging, shipping — costs that change with each unit

Break-even Analysis

Enter fixed costs, selling price, and variable cost to see the break-even point

Frequently Asked Questions

What is the break-even point?+
The break-even point (BEP) is where total revenue equals total costs — no profit, no loss. Formula: BEP (units) = Fixed Costs / (Selling Price per Unit − Variable Cost per Unit). BEP (revenue) = Fixed Costs / Contribution Margin Ratio.
What are fixed costs vs variable costs?+
Fixed costs remain constant regardless of production volume: rent, salaries, insurance, depreciation. Variable costs change with production: raw materials, packaging, shipping, sales commissions. Correctly classifying costs is crucial for accurate break-even analysis.
What is contribution margin?+
Contribution Margin = Selling Price − Variable Cost per Unit. It represents the amount each unit sold contributes toward covering fixed costs. CM Ratio = Contribution Margin / Selling Price. Higher CM means fewer units needed to break even.
How do I use break-even analysis for pricing?+
Set your target profit, add it to fixed costs, then calculate: Required Sales = (Fixed Costs + Target Profit) / Contribution Margin per Unit. This shows the minimum units at a given price. Compare different price points to find the optimal strategy.
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Track Profitability in Real-Time

Our ERP calculates contribution margins and break-even on every product automatically.