Break-Even Calculator
Calculate the break-even point in units and revenue for your business with fixed and variable costs.
Break-Even Units
200
Break-Even Revenue
$8,000.00
Contribution Margin
$25.00
Break-Even Analysis
| Fixed Costs / Month | $5,000.00 |
| Variable Cost / Unit | $15.00 |
| Selling Price / Unit | $40.00 |
| Contribution Margin / Unit | $25.00 |
| Contribution Margin % | 62.5% |
| Break-Even Units | 200 |
| Break-Even Revenue | $8,000.00 |
Profit at Different Volumes
| 0 units | -$5,000.00 |
| 100 units | -$2,500.00 |
| 150 units | -$1,250.00 |
| 200 units | $0.00 |
| 250 units | $1,250.00 |
| 300 units | $2,500.00 |
| 400 units | $5,000.00 |
Use the Break-Even Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How It Works
Determine the precise point at which your business covers all its costs, both fixed and variable, for the 2026 fiscal year. This calculator helps you understand how many units you need to sell or how much revenue you must generate to avoid a loss, providing a critical metric for financial planning and strategic decision-making in 2026.
The break-even point in units is calculated by dividing total fixed costs by the per-unit contribution margin (selling price per unit minus variable cost per unit). The break-even point in revenue is found by dividing total fixed costs by the contribution margin ratio (per-unit contribution margin divided by selling price per unit).
A common mistake is underestimating fixed or variable costs, leading to an inaccurate break-even point. Remember to include all indirect costs like rent, salaries, insurance, and marketing (fixed), as well as direct material and labor costs (variable) for each unit produced.
Example: Small Coffee Shop in 2026
- 1 A new coffee shop in 2026 has estimated monthly fixed costs of $4,500 (rent, salaries, utilities). Each coffee sells for $4.50, and the variable cost per coffee (beans, milk, cup) is $1.20.
- 2 Input: Fixed Costs = $4,500; Selling Price per Unit = $4.50; Variable Cost per Unit = $1.20. The calculator will determine the contribution margin per unit ($4.50 - $1.20 = $3.30) and the contribution margin ratio ($3.30 / $4.50 = 0.7333).
- 3 Result: Break-Even Point in Units = 1,364 coffees. Break-Even Point in Revenue = $6,138.
- 4 Context: To cover all its monthly expenses in 2026, the coffee shop needs to sell approximately 1,364 coffees, generating $6,138 in revenue. Achieving sales above these figures will result in a profit, while falling below will incur a loss.
Source: SBA — Business Guide · Last updated: April 2026
Frequently Asked Questions
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