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Break-Even Calculator — Units, Revenue and Profit Analysis

Last verified: May 2026

Calculate your break-even point in units and revenue. Find how many sales you need to cover costs, target a profit goal, and analyze your margin of safety.

Fixed Costs ($)

Rent, salaries, insurance, etc.

Price Per Unit ($)

What you charge per sale

Variable Cost Per Unit ($)

Materials, commissions, per-sale costs

Target Profit ($)

How much profit do you want?

Expected Sales (units)

Your projected sales volume

Break-Even Point

334 units

$25,050 in revenue

Contribution Margin

$45/unit

CM Ratio

60.0%

Target Profit Units

556

Expected Profit

$7,500

Revenue vs Total Cost

Lines cross at break-even (334 units)

Key Metrics

Contribution Margin$45 / unit

CM Ratio60.0%

Margin of Safety33.2%

Operating Leverage3.00x

Scenario Summary

Expected Revenue$37,500

Total Variable Costs$15,000

Total Fixed Costs$15,000

Net Profit / Loss$7,500

Analysis & insights

Your expected revenue is $37,500, based on the inputs above. Business metrics are early-warning systems. Track them monthly and watch the TREND, not the single point.

Calculation summary

Result derived from 5 inputs. Adjust any one to test sensitivity.

Risk & benchmark gauge

Current band

Moderate

Expected Revenue: $37,500

0255075100

LowModerateStrongMaximum

Industry benchmarks

Contribution Margin45.0%
Contribution Margin Ratio0.6%
Break Even Units$334
Break Even Revenue$25,050
Target Profit Units$556
Expected Revenue$37,500

Key insights

Track the trend, not the snapshot

Business metrics are most useful as month-over-month or year-over-year trends. A single calculation tells you less than 3-6 data points.

Sensitivity testing

Adjust each input by ±10% to find the most impactful variable — that's the one to focus your real-world decisions on.

Recommended actions(4)

Test the realistic range of each input

High priority

Try the lowest and highest realistic value for each input. The spread of results is the range you should actually plan for — point estimates lie.

Impact: Reveals which inputs matter most and where uncertainty hides.

Compare against published benchmarks

Medium priority

Whatever you're calculating, there's likely an industry benchmark for it. Google "[topic] average" or "[topic] median" to sanity-check the result.

Save or download a copy

Medium priority

For calculators that offer it, use "Download report (PDF)" to keep a snapshot. Otherwise screenshot the inputs + result before navigating away.

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What is Break-Even Analysis?

Break-even analysis tells you exactly how many units you must sell to cover all your costs. Below break-even, you lose money. Above it, every additional sale generates profit.

The contribution margin — price minus variable cost — is the foundation. It represents how much each sale contributes toward covering fixed costs and generating profit.

Break-even analysis is essential for pricing decisions, startup feasibility, new product launches, and evaluating business risk.

The Formula — How to Calculate Break-Even Analysis

Break-Even Units = Fixed Costs / (Price - Variable Cost per Unit) Target Profit Units = (Fixed Costs + Target Profit) / Contribution Margin

Fixed Costs = Costs that do not change with volume (rent, salaries, insurance)

Variable Costs = Costs that scale with each sale (materials, shipping, commissions)

Contribution Margin = Price minus variable cost — amount each sale contributes to overhead and profit

Frequently Asked Questions

Sources & References

SBA - Strengthen Your Finances

This tool is for educational purposes only and does not constitute financial, tax, or investment advice. Consult a qualified financial professional for advice specific to your situation.

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