Break-even Calculator

Know exactly how much you must sell before your business starts making a profit.

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How to use the Break-even Calculator

Add up your fixed costs for the period (usually a month).
Enter your average selling price per unit, excluding GST/VAT.
Enter the variable cost of producing or buying one unit.
Optionally add a profit target to see the sales needed to reach it.

Formula used

Contribution margin = Price − Variable cost

Break-even units = Fixed costs ÷ Contribution margin

Break-even revenue = Fixed costs ÷ (Contribution margin ÷ Price)

Units for target = (Fixed costs + Target profit) ÷ Contribution margin

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Break-even Calculator — FAQs

What is the break-even point?▾

The sales level at which total revenue equals total costs, so the business makes neither profit nor loss.

How can I lower my break-even point?▾

Raise prices, cut variable costs per unit (better purchase rates, less waste) or reduce fixed costs. Each increases how fast you reach profit.

What if I sell many products?▾

Use a weighted average price and variable cost based on your sales mix, or calculate break-even revenue using the overall contribution margin ratio.

Is depreciation a fixed cost?▾

Yes, depreciation of equipment is usually treated as a fixed cost for break-even analysis.

How to use the Break-even Calculator

Formula used

Break-even Calculator — FAQs

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