⚖️ Break-even Calculator

Calculate break-even units and sales revenue from fixed costs, variable cost per unit and selling price. Estimate target-profit sales and margin of safety.

⚙️ Business Inputs

Display currencyFormatting only. This calculator does not convert exchange rates.Fixed costs for this periodExamples: rent, salaries, subscriptions and equipment costs allocated to the period.Selling price per unitVariable cost per unitTarget operating profitAmount above break-even, before tax.Expected units sold (optional)Clear this field to hide the forecast and margin-of-safety estimate.

📊 Break-even Estimate

Break-even units (rounded up)

250

Break-even sales revenue: $12,500.00

Contribution per unit: $20.00
Contribution margin ratio: 40%
Exact break-even units: 250
Sales revenue at whole-unit break-even: $12,500.00
Target-profit units (rounded up): 350
Sales revenue at target-profit units: $17,500.00
Forecast operating profit: $3,000.00
Margin of safety (units): 150
Margin of safety (sales): $7,500.00
Margin of safety (%): 37.5%

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This is a planning estimate, not accounting or tax advice. It assumes one product or service with a stable selling price and variable cost per unit. Taxes, commissions, discounts, returns, financing costs and other amounts are excluded unless included in your inputs.

How to use the break-even calculator

Enter the fixed costs for the period you are planning, the selling price per unit and the variable cost to deliver or make one unit. Add a target operating profit and an expected sales quantity to see the units needed for that target, a forecast profit and the margin of safety. Choose any supported display currency; amounts are not converted.

Break-even formula

Contribution per unit = selling price − variable cost. Break-even units = fixed costs ÷ contribution per unit. Since units are usually sold whole, the tool also rounds the required units up. Break-even sales revenue = fixed costs ÷ contribution margin ratio, where the ratio is contribution per unit ÷ selling price.

Target profit and margin of safety

Units for a target operating profit = (fixed costs + target profit) ÷ contribution per unit, rounded up to the next whole unit. Margin of safety compares expected sales with break-even sales; a negative value means the forecast is below break-even. These estimates use the expected units you enter, not a prediction of actual demand.

Break-even vs. profit margin

Break-even estimates the sales volume needed to cover fixed and variable costs. Profit margin describes profit as a share of revenue. Use this calculator for unit and sales targets, or the Profit Margin Calculator for gross/net margin, markup and target selling price.