Break-Even Calculator - Break-Even Units, Sales & Margin of Safety
Break-Even Calculator
How many units must you sell before you start making a profit?
Units and Sales
Get the break-even point in whole units and in sales revenue, plus the exact fractional figure.
Target Profit
Enter the profit you want and see how many units and how much in sales it takes.
Margin of Safety
Compare expected sales with the break-even point to see how far sales can fall before you make a loss.
Full Privacy
Everything is calculated in your browser.
The Break-Even Formula
Each unit you sell brings in its price and costs its variable cost to make, leaving a contribution that goes towards covering fixed costs. Break-even units = fixed costs ÷ contribution per unit. With $10,000 of fixed costs, a $10 price and $6 variable cost, each unit contributes $4, so you break even at 2,500 units, or $25,000 in sales.
If the price is not above the variable cost, no volume can ever cover the fixed costs, and the calculator says so. Break-even is a planning tool: it assumes price and costs stay constant, which real businesses only approximate. The margin of safety is the share of expected sales you could lose before profit hits zero.
Key Takeaways
- Whole units: Rounded up, because you cannot sell part of a unit.
- Clear warnings: Explains when the price is too low ever to break even.
- Optional inputs: Target profit and expected sales are only used if you fill them in.