Free calculator
Break-even calculator
Enter fixed costs, selling price per unit, and variable cost per unit for one product. We compute contribution margin per unit (price − variable), break-even units (fixed ÷ contribution), and break-even revenue (units × price). Fractional units are allowed as a planning shortcut—see FAQ. Illustration only, not tax or investment advice.
When to use this calculator
Quick CVP checks when you have one average price and one average variable cost per unit—before you open a heavier model.
- Estimate how many units you must sell to cover fixed costs when contribution per unit is stable.
- Turn the same inputs into break-even revenue for a revenue goal conversation with finance or sales.
- Copy Sheets/Excel cells so your workbook uses the same FC ÷ (P − V) story as this page.
We use the textbook single-product break-even: profit is zero when fixed costs are covered by unit contribution times units sold.
Contribution and units
Contribution per unit = P − V (selling price minus variable cost per unit). Break-even units = F ÷ (P − V) when P > V and F ≥ 0. If F = 0, break-even units are 0.
Break-even revenue
Break-even revenue = (break-even units) × P. Equivalently, with contribution margin ratio m = (P − V) ÷ P, revenue break-even is F ÷ m when m > 0—we show the unit path on the calculator and keep the ratio form in this text for Sheets users.
Not modeled on purpose
Multiple products with different margins, step-fixed costs, taxes, discounts, inventory absorption, operating-leverage charts, and discounted cash-flow break-evens are out of scope—see FAQ and linked tools.
Use the numbers as a teaching and spreadsheet-alignment aid. For calendar time to recover an investment from cash inflows, use the payback period calculator. For return percent on a single outlay versus amount returned, use the ROI calculator. For gross margin % and markup % from cost and price labels, use the margin and markup calculator—contribution margin here is price − variable, not every firm’s gross margin definition.
Google Sheets & Excel
Put fixed costs, price per unit, and variable cost per unit in three cells. Contribution is price − variable; break-even units is fixed ÷ contribution when contribution > 0; break-even revenue is units × price.
=A2/(B2-C2)A2 = fixed costs; B2 = price per unit; C2 = variable cost per unit. Requires B2 > C2. Result is units (can be fractional).
=D2*B2D2 holds break-even units from the previous pattern (or nest: = (A2/(B2-C2)) * B2). Same currency as B2 when prices are money.
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Frequently asked questions
What does this break-even calculator do?
It estimates break-even units and break-even revenue from fixed costs, selling price per unit, and variable cost per unit for one product line, using contribution per unit = price − variable.
What is the break-even formula?
Break-even units = fixed costs ÷ (price per unit − variable cost per unit) when the denominator is positive. Break-even revenue = break-even units × price per unit.
Why can break-even units be fractional?
We do not round to whole widgets. Fractional units are a common planning convention so you can compare the math to a continuous model; interpret 0.1 of a unit as pro-rated volume if that fits your story.
How is this different from the payback period calculator?
Payback on this site is time to cover an investment from periodic cash inflows (equal or unequal). Break-even here is quantity or revenue where profit crosses zero in a CVP snapshot—same phrase “break-even” in English, different math object.
How is this different from ROI?
ROI compares amount returned to amount invested for a percent gain. This page answers how many units (or how much revenue) covers fixed versus variable structure at one price—use both tools when your question needs both angles.
Is contribution margin the same as gross margin on the margin & markup tool?
Not always. Here contribution per unit means price − variable cost per unit you typed. The margin & markup calculator uses selling price and unit cost you define there—align variable with direct costs in your chart of accounts before mixing the two pages blindly.
Why does it say there is no finite break-even?
When price ≤ variable cost per unit, contribution is zero or negative, so no positive volume makes profit zero in this linear model—you need a higher price, lower variable cost, or a different cost structure.
How do I match this in Google Sheets or Excel?
Use the copy cards: =A2/(B2-C2) for units when B2 is price and C2 is variable cost. Localized Excel may use ; separators—check your language pack. Revenue is units × price.
Is this a forex or crypto “break even” calculator?
No. Some search results use “break even” for trading entry vs exit. This page is business CVP only—no pip distance, fees, or position sizing.
Is this business, tax, or investment advice?
No. It is a free educational calculator. Treat outputs as illustrations tied to the inputs you typed, not a recommendation to change prices or costs.