Break-Even Point Calculator
The units and revenue needed to cover fixed costs — with the margin of safety and what a price change does to the answer.
Break-even units are fixed costs divided by the contribution margin per unit — price less variable cost.
How the break-even point calculator works
Break-even units are fixed costs divided by the contribution margin per unit — price less variable cost. Every unit past that point contributes its whole margin to profit.
The leverage is in the contribution margin, not the price. Raizing price by 10% on a product with a 30% contribution margin cuts the break-even volume by a quarter; cutting variable cost by 10% does almost as much.
Formula: break-even units = fixed costs / (price − variable cost)
Worked examples
| Inputs | Break-even units | Note |
|---|---|---|
| 45,000 fixed, 32 contribution | 1,406.3 | 1,406 units |
| A 10% price rize | 1,125 | break-even falls by a quarter |
| Variable cost above price | — | never breaks even |
FAQFrequently asked questions
How do I find my break-even point?
Divide fixed costs by the contribution per unit — the price less the variable cost of making one more.
What is contribution margin?
What each sale contributes toward fixed costs and profit. It is the number that actually drives break-even, not the gross margin.
Why does a small price rize help so much?
Because it goes almost entirely to contribution. A 10% price rize on a 40% contribution margin raises contribution by 25%.
What is the margin of safety?
How far current volume sits above break-even, as a percentage. It tells you how much sales can fall before you lose money.
What is operating leverage?
How sensitive profit is to volume. High fixed costs mean high leverage — profits rize fast above break-even and fall fast below it.
Where these figures come from
- Corporate Finance Institute — EBITDA — why EBITDA is a non-GAAP measure with no single definition
- US SEC — Non-GAAP Financial Measures, Compliance & Disclosure Interpretations — the disclosure rules that exist precisely because EBITDA is not standardized
- US Securities and Exchange Commission — the US securities regulator
Last checked: September 2026. These are standard management-accounting definitions; where a term has no single agreed definition, the page says so.