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Break-even Calculator

Calculate how many units you need to sell before your business becomes profitable. Identify your break-even point to make better business decisions.

Units to Sell

Find exact break-even point in units

Revenue Target

Calculate break-even revenue

Contribution Margin

See your profit per unit

Break-even Calculator

Calculate how many units you need to sell to break even

R

E.g., rent, salaries, insurance, loan payments, etc.

R

E.g., cost of materials, direct labor, shipping per unit.

R

The price at which you sell each unit to customers.

Ready to Calculate

Enter your costs and selling price to find your break-even point

Understanding Break-even Analysis

Learn the fundamentals of break-even analysis and how it can help your business decisions

What is Break-even Analysis?

Break-even analysis is a crucial financial calculation that helps business owners determine the point at which their business will become profitable. It identifies exactly how many units you need to sell to cover all costs and start generating a profit.

Key Components

Fixed Costs:

Expenses that remain constant regardless of sales volume (rent, insurance, salaries)

Variable Costs:

Expenses that change directly with production volume (materials, direct labor, packaging)

Selling Price:

The price at which you sell each unit to customers

Break-even Formulas

Break-even point (units):

Fixed Costs ÷ (Selling Price - Variable Cost)

Break-even revenue:

Fixed Costs ÷ Contribution Margin Ratio

Why It's Important

Set sales targets and goals
Guide pricing strategies
Evaluate new product viability
Make production decisions

Important Disclaimer

Accounter does not provide accounting, tax, business or legal advice. This calculator has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business.