Mr Calcu | Find your break-even point fast and plan confidently with data-driven insights.

Calculate your break-even point easily and uncover insights that drive profit. Take control of your business success with clarity and confidence.

Break Even Analysis Calculator

Metric

Imperial

Fixed Costs ($)

Variable Costs per Unit ($)

Selling Price per Unit ($)

Units Sold

500 units

Break Even Analysis Calculator Guidelines

Ready to find your break-even point? Follow these quick steps:

How to Use the Calculator

Enter your fixed costs (e.g., rent, salaries).
Input your variable cost per unit (e.g., raw materials, shipping).
Provide your intended selling price per unit.

Best Practices

If variable cost ≥ selling price, the break-even point is undefined—adjust your pricing model.
Run different scenarios (higher costs, lower prices) to evaluate financial risk.
Include discounting, marketing spend, and taxes if they change per unit sold.
Review frequently if your costs or pricing change seasonally or due to inflation.

Break Even Analysis Calculator Description

What is Break-Even Analysis?

Break-even analysis helps determine the point at which your business covers all its costs and starts to generate a profit.

Why It's Important

Helps you determine the minimum sales volume needed to avoid losses.
Supports pricing and cost-control decisions.
Assists in evaluating the feasibility of new ventures or expansions.

Pro Tip: Use break-even analysis regularly when revising pricing strategies or launching new products to stay financially sound.

Core Formulas

Break-Even Point (Units):

Break-Even Units = Fixed Costs / (Selling Price - Variable Cost)

Break-Even Revenue:

Break-Even Revenue = Fixed Costs / Contribution Margin Ratio

Where:

Fixed Costs = Costs that don’t vary with production (e.g., rent, salaries).
Variable Costs = Costs that vary with units sold (e.g., materials).
Contribution Margin = Selling Price - Variable Cost
Contribution Margin Ratio = Contribution Margin / Selling Price

Mini Case Study 1: SaaS Startup

Monthly fixed costs: $12,000
Subscription price: $20
Variable cost per user: $8
Break-even users: 1,000

$12,000 / ($20 - $8) = 1,000 users

Mini Case Study 2: Local Bakery

Monthly fixed costs: $2,200
Price per cake: $40
Variable cost per cake: $18
Break-even volume: 100 cakes

$2,200 / ($40 - $18) = 100 cakes

Start calculating now and make smarter, more confident business decisions today!

Example Calculation

Example	Fixed Costs	Variable Costs	Selling Price	Break-Even Point
Example 1	$1,000	$50	$100	20 units
Example 2	$5,000	$20	$50	250 units
Example 3	$0	$10	$30	0 units (profit from first unit)
Example 4	$2,000	$60	$60	∞ (no break-even)
Example 5	$1,500	$70	$60	Impossible (loss per unit)

Frequently Asked Questions

A financial calculation that determines when a business will break even.

Enter your fixed costs, variable costs, and selling price into our calculator.

It helps businesses make informed decisions about pricing, production, and investment.

Your contribution margin becomes zero, meaning you can never break even regardless of volume.

Yes, but you must compute a weighted average contribution margin across your product mix.

Your business breaks even from the first unit sold, assuming positive contribution margin.

They reduce the effective selling price, increasing the number of units required to break even.

Yes, if your variable costs exceed your selling price or if demand is too low to cover fixed costs.

It can be very effective, especially when service delivery has quantifiable inputs and clear fixed and variable costs.

Mr Calcu | Find your break-even point fast and plan confidently with data-driven insights.

Break Even Analysis Calculator

Break Even Analysis Calculator Guidelines

How to Use the Calculator

Best Practices

Break Even Analysis Calculator Description

What is Break-Even Analysis?

Why It's Important

Core Formulas

Mini Case Study 1: SaaS Startup

Mini Case Study 2: Local Bakery

Example Calculation

Frequently Asked Questions

What is break-even analysis?

How do I calculate my break-even point?

Why is break-even analysis important?

What happens if my variable costs equal my selling price?

Can I still calculate break-even with multiple products?

What if my fixed costs are zero?

How do discounts and promotions affect break-even?

Is it possible to never reach break-even?

How accurate is break-even analysis for service-based businesses?

Our Other Tools