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Free calculator

Break-even calculator

Estimate the unit volume and sales revenue needed for contribution margin to cover fixed costs.

Reviewed by the Booksmrt bookkeeping teamLast reviewed 2026-07-27

Result

Contribution per unit
$60
Break-even units
200
Break-even revenue
$20,000

Formula

Break-even units = fixed costs / (price per unit - variable cost per unit)

When to use it

Use it to test pricing, direct cost, and fixed-cost assumptions for a product or repeatable service.

What it does not prove

The result assumes stable price, unit cost, and fixed costs. It is not a guarantee and does not model taxes, financing, capacity, or product mix.

Sources

Keep learning

Gross profitGross profit is revenue minus the direct cost of producing the goods or services sold.ExpenseAn expense is a cost recognized in earning revenue or operating the business during a period.RevenueRevenue is income earned from a business's ordinary activities before subtracting expenses.

Educational information only. Booksmrt provides bookkeeping services, not tax, legal, audit, or investment advice. Confirm material accounting and tax decisions with the appropriate professional.