What is the break-even point?

The break-even point is the sales level where total revenue equals total costs and profit is zero.

Is break-even calculated in units or revenue?

This calculator returns break-even in units. We can add a revenue-based break-even option later.

If variable cost exceeds selling price, you cannot break even with that pricing because contribution margin is negative.

Use this break even calculator to estimate how many units you must sell to cover your fixed costs based on selling price and variable cost per unit.

Fixed Costs Selling Price per Unit Variable Cost per Unit

Break-even Units = Fixed Costs / (Selling Price − Variable Cost)

Fixed costs 5,000, selling price 50, variable cost 30 → contribution 20 → break-even = 250 units.

What if variable cost is higher than selling price?
The business will not break even with that pricing.