Free Break-Even Calculator
Calculate how many units you need to sell and how much revenue your business needs to generate before you break even.
Built by BizPilot for smarter business decisions.
Calculate Your Break-Even Point
Enter your fixed costs, selling price and variable cost per unit. BizPilot will calculate your break-even units and break-even revenue.
What Is a Break-Even Point?
Your break-even point is the level of sales where your total contribution from sales covers your fixed costs. At this point, the calculation shows zero operating profit before any costs not included in the inputs.
Knowing your break-even point can help you evaluate pricing, cost structure and sales targets before making business decisions.
What Costs Should You Include?
Accurate break-even calculations depend on separating fixed costs from variable costs.
Fixed Costs
Costs that generally do not change directly with each unit sold, such as rent, software subscriptions, salaries and insurance.
Variable Costs
Costs that increase with each unit sold, such as product cost, packaging, transaction-related costs or per-unit fulfilment costs.
Selling Price
The amount the customer pays for one unit before considering any taxes or other items you have not included in the calculation.
Break-Even Calculation Example
Suppose a business has the following monthly costs and pricing:
Why Break-Even Analysis Matters
Break-even analysis gives business owners a clearer view of the relationship between costs, pricing and sales volume. A lower selling price can increase the number of units required to break even, while lower costs or a higher selling price can reduce the required sales volume.
You can also use the BizPilot Break-Even Calculator to test different scenarios before changing your pricing or cost structure.
More Free BizPilot Business Calculators
Break-Even Calculator FAQs
What is a break-even calculator?
A break-even calculator estimates the sales volume required for the contribution from sales to cover fixed costs based on your selling price and variable cost per unit.
How do I calculate break-even units?
Subtract the variable cost per unit from the selling price per unit. Then divide your fixed costs by that contribution margin per unit.
What is contribution margin?
Contribution margin per unit is the selling price minus the variable cost per unit. It shows how much each unit contributes toward fixed costs and, after fixed costs are covered, profit.
Does break-even mean the business is profitable?
At the calculated break-even point, contribution from the included sales equals the included fixed costs. Sales above that point can contribute to profit, assuming the inputs accurately capture the relevant costs and other expenses do not change the result.
Is the BizPilot Break-Even Calculator free?
Yes. The BizPilot Break-Even Calculator is free to use and is designed to help business owners quickly estimate their break-even sales volume.
Plan Your Business With BizPilot
Break-even is only one part of business planning. The BizPilot Business Starter System helps you work through pricing, profitability, sales targets, advertising economics and other important business numbers in one structured system.
Explore the BizPilot Business Starter System