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Break-Even Calculator

This break-even calculator shows how many units you must sell to cover all your fixed and variable costs. It is useful for entrepreneurs, freelancers, ecommerce sellers, restaurants and finance teams who want to test a new price, estimate the minimum viable sales volume or validate a business plan before launch.

Frequently Asked Questions

The break-even point is the level of sales where total revenue equals total costs, meaning profit is zero.

In that case there is no realistic break-even point, because each unit sold does not generate enough contribution margin to cover fixed costs. You usually need to raise price, lower variable cost or change the offer.

How this calculator works

Formula explanation

**Formula:** Break-even units = Fixed Costs / (Selling Price − Variable Cost) | Break-even revenue = Break-even units × Selling Price

Worked example

**Example:** Fixed costs = 5,000, price = 50, variable cost = 20. Contribution margin = 30. Break-even units = 166.67. Break-even revenue = 8,333.50.

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