Determine your break-even point in units or sales dollars — the point at which total revenue equals total costs. Essential for pricing strategy and profitability analysis.
A break-even point calculator determines when total revenue equals total costs, showing exactly how many units must be sold or revenue generated before a business becomes profitable. Calculates break-even in units and dollars by dividing fixed costs by contribution margin (selling price minus variable cost per unit). Essential for business planning, pricing strategy, product launch decisions, investment evaluation, and understanding minimum sales targets required to avoid losses. Used before starting businesses, launching products, or making major investments to ensure viability.
Know precisely how many sales are needed before making profit, preventing costly business mistakes from unrealistic expectations or undercapitalization. Set realistic sales goals based on actual cost structure rather than guessing or hoping. Evaluate whether a business idea is viable—if break-even requires impossibly high sales volumes, reconsider or adjust pricing and costs before investing. Optimize pricing by seeing how price changes affect break-even point—sometimes higher prices dramatically reduce units needed despite lower volume. Make confident go/no-go decisions on new products, expansions, or business ventures by understanding minimum performance required for profitability. Investors and lenders often require break-even analysis before funding.
Enter fixed costs (rent, salaries, insurance, equipment—costs that do not change with sales volume), variable cost per unit (materials, packaging, shipping—costs that increase per item sold), and selling price per unit. Results show break-even point in both units (how many must be sold) and revenue dollars (total sales needed). If you want to target specific profit instead of just break-even, add desired profit to fixed costs. Calculate contribution margin (price minus variable cost) to understand profit per unit after covering variable costs. Use for business plans, product launches, pricing decisions, and financial forecasting. Recalculate when costs or prices change to maintain profitability awareness.
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Common questions about break-even point calculator