Break-Even Calculator
Find the exact units and revenue needed to cover all your costs, with a visual revenue vs. cost chart.
Break-Even Units
286
Break-Even Revenue
$17,143
Contribution Margin
$35
CM Ratio
58.3%
Profit = Revenue − Total Cost. Break-even is where lines intersect.
How This Calculator Works
Break-even analysis is one of the most fundamental tools in business planning. This calculator uses the classic contribution margin formula: Break-Even Units = Fixed Costs ÷ (Selling Price − Variable Cost per Unit). The difference between selling price and variable cost per unit is the contribution margin— the amount each sale contributes to paying down fixed costs and ultimately generating profit.
The chart visualizes two lines: the Revenue line (units × selling price) and the Total Cost line (fixed costs + units × variable cost). Where they intersect is your break-even point. To the left of that point you are operating at a loss; to the right you are generating profit. The steeper your revenue line compared to the total cost line, the faster profit accumulates beyond break-even.
The CM ratio — contribution margin divided by selling price — shows what fraction of each revenue dollar flows toward profit after covering variable costs. A higher CM ratio generally means a more scalable business model that reaches profitability faster with each additional sale.