Break-Even Calculator

Units and revenue needed before profit begins.

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About this calculator

Break-even analysis answers the first question of any business: how much must we sell before profits start? Contribution margin — what each sale adds after variable costs — pays down fixed costs until they're covered.

A BEP that feels unreachable signals pricing or cost-structure problems early, when they're cheapest to fix.

Formula

BEP units = Fixed costs ÷ (Price − Variable cost per unit)

Frequently Asked Questions

What counts as a fixed cost?

Costs unchanged by volume within your range: rent, salaries, insurance, software subscriptions. Electricity partially scales with production and is partly variable.

My BEP is too high — options?

Raise price (check elasticity), cut variable cost via suppliers/scale, reduce fixed overheads, or improve product mix toward higher-margin items.