Break-Even Calculator

The break-even point is where contribution covers fixed costs: with fixed costs of 50 000 and a contribution of 10 per unit, break-even is 5000 units.

Fixed costs:

Selling price per unit:

Variable cost per unit:

Break-even quantity =

5000 units

Precision

Contribution per unit: 10.00
Contribution margin ratio: 40 %
Break-even revenue: 125,000.00
Units to sell (rounded up): 5000

Step-by-step solution

Contribution per unit = 25.00 − 15.00 = 10.00
Break-even quantity = Fixed costs ÷ Contribution = 50,000.00 ÷ 10.00 = 5000 units
Break-even revenue = 5000 × 25.00 = 125,000.00

Break-Even Formula

BEP = FC ÷ (P − VC)

FC fixed costs, P price per unit, VC variable cost per unit

Worked Example

Fixed costs of 50 000, a price of 25 and a variable cost of 15 per unit:

Contribution per unit = 25.00 − 15.00 = 10.00
Break-even quantity = Fixed costs ÷ Contribution = 50,000.00 ÷ 10.00 = 5000 units
Break-even revenue = 5000 × 25.00 = 125,000.00

Contribution margin ratio: 40 % · Break-even revenue: 125,000.00 · Units to sell (rounded up): 5000

Using break-even analysis

The break-even quantity is fixed cost divided by contribution per unit (price minus variable cost). Below it the business makes a loss; every unit above it adds the contribution margin to profit. The margin of safety shows how far sales can fall before a loss. The model assumes constant price and variable cost, so check it again if discounts, overtime or bulk purchasing change those figures at higher volumes.

Frequently asked questions

What is contribution margin?

Price minus variable cost per unit: what each sale contributes towards fixed costs and then profit. As a ratio, (P − VC) ÷ P; here 10 ÷ 25 = 40 %.

How do I find the units needed for a target profit?

Add the target profit to fixed costs: units = (FC + target profit) ÷ (P − VC). For a profit of 20 000, (50 000 + 20 000) ÷ 10 = 7000 units.

How do I calculate break-even sales in money?

Fixed costs ÷ contribution margin ratio, or break-even units × price: 50 000 ÷ 0.4 = 125 000.

Sources

Last reviewed: 2026-10-15. Factors are stored exactly and computed with 50-digit decimal arithmetic. See how we verify conversion factors.

Cite this page

APA

Scientific Converters. (2026, October 15). Break-Even Calculator. Retrieved October 25, 2026, from https://scientificconverters.com/calculators/break-even-calculator/

IEEE

Scientific Converters, "Break-Even Calculator," scientificconverters.com. Accessed: Oct. 25, 2026. [Online]. Available: https://scientificconverters.com/calculators/break-even-calculator/