Breakeven Point Calculator
Free Breakeven point Calculator for pricing & profitability. Enter your numbers to see returns, costs, and optimized scenarios instantly.
Reviewed for accuracy by Sahil, Senior Finance & Tax Editor
Breakeven Point Calculator
Calculator
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Formula: Break-Even Units = Fixed Costs / (Price per Unit - Variable Cost per Unit)
Worked example — 2,286 coffees/month | $11,430 revenue to break even
Formula
Break-Even Units = Fixed Costs / (Price per Unit - Variable Cost per Unit)
Break-even units = Fixed Costs / (Price − Variable Cost per Unit). This version adds break-even revenue = break-even units × price, margin of safety (current sales − break-even), and a sensitivity table showing how break-even shifts when price or variable cost changes by ±10%/20%. Useful for pricing decisions and scenario planning.
Worked Examples
Example 1: Coffee Shop Break-Even
Problem:A coffee shop has $8,000/month fixed costs (rent, salaries). Each coffee costs $1.50 in ingredients (variable cost) and sells for $5. How many coffees must they sell to break even?
Solution:Contribution margin: $5.00 - $1.50 = $3.50 Break-even units: $8,000 / $3.50 = 2,286 coffees Break-even revenue: 2,286 × $5 = $11,430 That is about 76 coffees per day (30-day month).
Result:2,286 coffees/month | $11,430 revenue to break even
Example 2: SaaS Product Launch
Problem:Monthly fixed costs: $25,000 (infrastructure, team). Variable cost per user: $3/month. Subscription price: $29/month.
Solution:Contribution margin: $29 - $3 = $26 Break-even subscribers: $25,000 / $26 = 962 Break-even MRR: 962 × $29 = $27,898 Contribution margin ratio: $26/$29 = 89.7%
Result:962 subscribers needed | $27,898 MRR to break even
Frequently Asked Questions
What is the break-even point?
The break-even point is the number of units you need to sell (or the revenue you need to generate) to cover all your costs — both fixed and variable. At break-even, total revenue equals total costs, and profit is zero. Selling above break-even generates profit; below it, you incur losses. It is a fundamental concept in business planning, pricing strategy, and financial analysis.
How do I calculate break-even point?
Break-even point is where total revenue equals total costs. In units: BEP = Fixed Costs / (Price per Unit - Variable Cost per Unit). In revenue: BEP = Fixed Costs / Contribution Margin Ratio. For example, with 50,000 dollars in fixed costs, a 100 dollar price, and 60 dollar variable cost, BEP = 1,250 units or 125,000 dollars in revenue.
References
Reviewed for accuracy by Sahil, Senior Finance & Tax Editor · Editorial policy
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