The break-even point is the sales volume at which total revenue exactly equals total costs — neither profit nor loss. Every unit sold above the break-even generates pure profit at the contribution margin rate; every unit below it adds to the loss. This Break-Even Calculator computes your break-even ...
Rent, salaries, insurance, subscriptions — costs that don't change with volume
Materials, labour, shipping
Contribution Margin / Unit
$20.00
CM Ratio
57.14%
Need 650 units ($22,750.00) to hit $5,000.00 profit
Current profit: $4,000.00 · MOS: 33.3% · DOL: 3.00×
BREAK-EVEN UNITS
400
BREAK-EVEN REVENUE
$14,000.00
CM/UNIT
$20.00
CM RATIO
57.1%
MOS
33.3%
DOL
3.00×
BREAK-EVEN POINT
UNITS
400
REVENUE
$14,000.00
CM/UNIT
$20.00
CM RATIO
57.14%
MOS
33.3%
PROFIT / LOSS BY VOLUME
BE UNITS
400
BE REVENUE
$14,000.00
TARGET UNITS
650
DOL
3.00×
Live diagram · updates as you type
| UNITS | REVENUE | VAR. COSTS | CONTRIB. MARGIN | FIXED COSTS | PROFIT / LOSS |
|---|---|---|---|---|---|
| 0 | $0.00 | $0.00 | $0.00 | $8,000.00 | ($8,000.00) |
| 80 | $2,800.00 | $1,200.00 | $1,600.00 | $8,000.00 | ($6,400.00) |
| 160 | $5,600.00 | $2,400.00 | $3,200.00 | $8,000.00 | ($4,800.00) |
| 240 | $8,400.00 | $3,600.00 | $4,800.00 | $8,000.00 | ($3,200.00) |
| 320 | $11,200.00 | $4,800.00 | $6,400.00 | $8,000.00 | ($1,600.00) |
| 400← BEP | $14,000.00 | $6,000.00 | $8,000.00 | $8,000.00 | $0.00 |
| 480 | $16,800.00 | $7,200.00 | $9,600.00 | $8,000.00 | $1,600.00 |
| 560 | $19,600.00 | $8,400.00 | $11,200.00 | $8,000.00 | $3,200.00 |
| 600← Current | $21,000.00 | $9,000.00 | $12,000.00 | $8,000.00 | $4,000.00 |
| 640 | $22,400.00 | $9,600.00 | $12,800.00 | $8,000.00 | $4,800.00 |
| 650← Target | $22,750.00 | $9,750.00 | $13,000.00 | $8,000.00 | $5,000.00 |
| 720 | $25,200.00 | $10,800.00 | $14,400.00 | $8,000.00 | $6,400.00 |
| 800 | $28,000.00 | $12,000.00 | $16,000.00 | $8,000.00 | $8,000.00 |
| 880 | $30,800.00 | $13,200.00 | $17,600.00 | $8,000.00 | $9,600.00 |
Blue = break-even point · Green = current sales · Yellow = target profit level · Losses shown in parentheses
Break-Even Units
400
Minimum units to cover all costs
Break-Even Revenue
$14,000.00
Revenue needed to break even
Contribution Margin
$20.00/unit
Revenue − variable cost per unit
CM Ratio
57.14%
% of each revenue dollar covering fixed costs
Target Units
650
Units to earn $5,000.00 profit
Target Revenue
$22,750.00
Revenue for $5,000.00 profit
Current Profit
$4,000.00
P&L at 600 units
Margin of Safety
33.33%
How far above BEP you are
MOS Revenue
$7,000.00
Buffer before hitting break-even
Degree of Op. Lev.
3.00×
1% revenue increase → 3.00% profit increase
Enter your total fixed costs for the period — rent, salaries, insurance, software subscriptions, and any other costs that stay the same regardless of how many units you sell. If calculating monthly, enter monthly fixed costs.
Enter the variable cost per unit — the direct cost of producing or delivering one unit: materials, direct labour, shipping, packaging, sales commissions, payment processing fees. These costs rise proportionally with volume.
Enter your selling price per unit. The calculator immediately shows the contribution margin per unit (price − variable cost) and the contribution margin ratio. If the selling price is below the variable cost, you can never break even — the calculator shows a warning.
Enter your target profit — the minimum profit you want to earn in the period. The calculator shows the exact units and revenue needed to hit it.
Enter your current or expected sales volume in units. The calculator shows your current profit, margin of safety (how far above break-even you are as a %), and degree of operating leverage (DOL).
Review the P&L table to see profit and loss at every volume level. The break-even row is highlighted blue, your current sales row is green, and the target profit row is yellow.
Example: Fixed costs $8,000/month, variable cost $15/unit, selling price $35/unit. Contribution margin = $35 − $15 = $20/unit. CM ratio = $20 / $35 = 57.14%. Break-even = $8,000 / $20 = 400 units. Break-even revenue = 400 × $35 = $14,000. Target profit $5,000: units needed = ($8,000 + $5,000) / $20 = 650 units, revenue = $22,750. Current sales 600 units: profit = (600 × $20) − $8,000 = $4,000. Margin of safety = ($21,000 − $14,000) / $21,000 = 33.33%. DOL = $12,000 CM / $4,000 operating income = 3.0× (a 10% revenue increase → 30% profit increase).
| NAME | FORMULA | DESCRIPTION |
|---|---|---|
| Contribution Margin/Unit | CM = Selling Price − Variable Cost per Unit | Profit contribution of each unit toward covering fixed costs |
| CM Ratio | CMR = CM per Unit ÷ Selling Price | % of each revenue dollar available to cover fixed costs and profit |
| Break-Even Units | BEP = Fixed Costs ÷ CM per Unit | Minimum units to sell to cover all costs — zero profit |
| Break-Even Revenue | BER = Fixed Costs ÷ CM Ratio | Minimum revenue to cover all costs |
| Target Profit Units | Units = (Fixed Costs + Target Profit) ÷ CM per Unit | Units needed to achieve a specific profit level |
| Margin of Safety | MOS = (Current Revenue − BER) ÷ Current Revenue × 100 | % by which current sales exceed break-even — buffer before losses |
| Degree of Op. Leverage | DOL = Total CM ÷ Operating Income | A 1% revenue change → DOL × 1% change in operating profit |
| Operating Income | OI = (Units × CM) − Fixed Costs | Profit before interest and taxes — also called EBIT |
Disclaimer: Break-even analysis assumes linear cost and revenue relationships and a single product/service. Real businesses have mixed cost structures, multiple products, and step-fixed costs. This is for planning purposes only — consult an accountant for full financial modelling.
Last updated: April 25, 2026 · Formula verified by EagleCalculator team · Eagle-eyed accuracy for every calculation.