Break-even calculator
Break-even is the sales volume at which contribution exactly covers fixed costs and operating profit is zero.
Method first: Contribution per unit equals selling price less variable cost per unit. Break-even units equal fixed costs divided by contribution per unit. Break-even revenue equals break-even units multiplied by selling price.
FinanceGPTToolsBreak-even calculator
Break-even is the sales volume at which contribution exactly covers fixed costs and operating profit is zero.
Calculated from the assumptions shown. Review the methodology and limitations before using the result.
How the analysis works.
Contribution per unit equals selling price less variable cost per unit. Break-even units equal fixed costs divided by contribution per unit. Break-even revenue equals break-even units multiplied by selling price.
What this does not replace.
The calculation assumes fixed costs remain fixed, unit economics are stable and all units have the same selling price and variable cost.
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Open →Questions about this tool.
What happens if variable cost is higher than selling price?
There is no positive contribution margin, so a conventional break-even volume cannot be calculated until price or variable cost changes.
