What is the break-even point?

The break-even point is the sales volume at which total revenue exactly equals total cost (fixed + variable). Below this volume you lose money; above it you make a profit.

What is contribution margin?

Contribution margin per unit is the selling price minus the variable cost per unit. It represents the amount each unit sold contributes toward covering fixed costs — and, after the break-even point, toward profit.

Why must price exceed variable cost?

If the price is less than or equal to the variable cost, every unit sold loses money on the variable side, so no quantity of sales can ever cover the fixed costs. The break-even point is mathematically undefined.

Does this include taxes?

This calculator computes the operating (pre-tax) break-even point. To find the units required for a target after-tax profit, divide the target pre-tax profit (target after-tax profit / (1 − tax rate)) by the contribution margin per unit and add it to break-even units.

Break-Even Calculator

Gratis break-even calculator using the standard cost-volume-profit (CVP) formula. Enter your fixed costs, variable cost per unit, and selling price to see how many units you must sell to cover all costs, along with contribution margin per unit and as a percentage of price.

Find the sales volume where total revenue equals total cost — your break-even point.

Q_{B E} = \frac{F}{P - V}, C M % = \frac{P - V}{P} \times 100

Gerelateerde calculators

Marge & Markup Calculator

Bereken profit, profit margin %, and markup % — or back out the price needed to hit a target margin or markup.

ROI Calculator

Bereken your return on investment, annualized ROI (CAGR), and investment multiple.

Korting Calculator

Bereken sale price, savings, and final price after discount and tax.

Samengestelde Rente Calculator

Bereken how your savings grow over time with compound interest and regular contributions.