Break-Even Calculator | Simple, Target Profit & Analysis

The break-even point is the sales volume where Total Revenue equals Total Costs (Fixed + Variable). At this point you cover all costs but make zero profit. Selling even one unit more generates profit.

Fixed costs (rent, salaries, insurance) do not change with production volume. Variable costs (materials, commissions) scale with each unit sold. This distinction is crucial for calculating contribution margin and understanding how profit grows with scale.

Contribution Margin = Selling Price - Variable Cost per Unit. It represents how much each sale contributes to covering fixed costs. Break-Even Units = Fixed Costs / Contribution Margin. A higher contribution margin means you reach break-even faster.

Target Profit Units = (Fixed Costs + Target Profit) / Contribution Margin. Use Target Profit mode in this calculator — enter your desired net profit and it solves for required units and revenue.

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