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Free break-even calculator & profitability calculator. Calculate break-even point, required sales volume, contribution margin & profitability analysis. Our calculator helps businesses determine the minimum sales needed to cover fixed and variable costs with comprehensive financial analysis for pricing and cost optimization strategies.
Last updated: February 2, 2026
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Total fixed costs (rent, salaries, insurance, etc.)
Cost per unit (materials, direct labor, etc.)
Selling price per unit
Break-Even Units
1,000
units to break even
Break-Even Revenue
$75,000.00
total revenue needed
Contribution Margin
$50.00
per unit
CM Ratio
66.7%
margin ratio
Analysis:
You need to sell 1,000 units to break even. Each unit contributes $50.00 toward fixed costs.
Break-Even Formula:
Formula
Fixed Costs ÷ Contribution Margin
Determines minimum units to sell to cover all costs
Formula
Price - Variable Cost
Shows how much each sale contributes to profitability
Cost types
Rent, Salaries, Insurance
Identifies all costs that don't vary with production
Cost types
Materials, Labor, Packaging
Tracks costs that scale directly with sales volume
Profit analysis
Revenue - Total Costs
Projects profit at various sales volumes above break-even
Revenue formula
Break-Even Units × Price
Shows minimum revenue needed in dollar terms
With $50,000 fixed costs, $25 variable cost, and $75 price per unit:
Break-Even Units
1,000
Break-Even Revenue
$75,000
Our break-even profitability calculator uses fundamental cost-volume-profit analysis to determine the exact sales volume needed to cover all business costs. The calculation applies contribution margin principles to show how each sale contributes to covering fixed costs and generating profit.
Break-Even Units = Fixed Costs ÷ (Price - Variable Cost)Contribution Margin = Price - Variable Cost per UnitBreak-Even Revenue = Break-Even Units × PriceCM Ratio = (Contribution Margin ÷ Price) × 100This fundamental formula determines how many units must be sold to cover all fixed costs. The contribution margin shows how much each sale contributes toward covering fixed costs and generating profit.
Shows relationship between costs, revenue, and break-even point
Break-even analysis is based on cost-volume-profit (CVP) relationships in managerial accounting. The analysis separates costs into fixed and variable components, then determines the sales volume where total revenue equals total costs. This critical point helps businesses set sales targets, evaluate pricing strategies, and assess business viability.
Need help with other financial calculations? Check out our profit margin calculator and cash flow forecast calculator.
Get Custom Calculator for Your PlatformResult: Sell 1,000 units or generate $75,000 revenue to break even
Each unit contributes $50 toward fixed costs. After 1,000 units, each additional sale generates $50 profit.
Fixed: $30,000 | Variable: $40 | Price: $100
Break-Even: 500 units ($50,000 revenue)
Fixed: $100,000 | Variable: $15 | Price: $40
Break-Even: 4,000 units ($160,000 revenue)
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