⚡ Free Online Tool
Break-Even Calculator
Find the exact point where your business covers all costs. Essential for startups, entrepreneurs, and any product or service business.
❓ Frequently Asked Questions
What is break-even point? +
The break-even point is where total revenue equals total costs — neither profit nor loss. Selling above this point generates profit; below it incurs loss.
What is contribution margin? +
Contribution margin = Selling price − Variable cost per unit. It represents how much each unit sold contributes to covering fixed costs and generating profit.
How to lower the break-even point? +
1) Reduce fixed costs (rent, salaries). 2) Reduce variable costs (cheaper suppliers). 3) Increase selling price. 4) Improve sales mix toward higher-margin products.
What is the break-even formula? +
Break-Even Units = Fixed Costs ÷ (Selling Price − Variable Cost per Unit). Break-Even Revenue = Break-Even Units × Selling Price.