About this tool
Break-Even Point Calculator is a free, in-browser business tool that finds the sales volume at which total revenue equals total cost — the point where a product stops losing money.
The break-even quantity is fixed costs ÷ contribution margin, where the contribution margin is the selling price minus the variable cost per unit. Multiplying by price gives break-even revenue. If you enter expected sales, the margin of safety shows how far above (or below) break-even you are as a percentage of expected sales.
Use it to sanity-check pricing before a launch, or to see how a rent increase moves the target. All inputs stay in your browser — nothing about your business is uploaded.
Frequently asked questions
What is the contribution margin?
It is selling price minus variable cost per unit — the amount each sale contributes toward covering fixed costs. The percentage shown is the contribution margin ratio (contribution margin ÷ price).
Why do I get an error when variable cost equals or exceeds price?
If each unit costs as much to make as it sells for, no volume of sales can ever cover fixed costs — the break-even point does not exist, so the tool reports it instead of showing an infinite number.
Should break-even units be rounded?
The tool shows the exact mathematical value; since you cannot sell a fraction of a unit, round up to the next whole unit to be sure you have covered costs.
What is the margin of safety?
It is (expected units − break-even units) ÷ expected units × 100 — the percentage sales can fall before you start losing money. A negative value means expected sales are below break-even.