Free business calculator

Business Break-Even Calculator

Find the units, customers, jobs or revenue your business needs to cover its costs.

Simple calculator

Enter three numbers

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Planning note: This calculator is for business planning and screening. Results depend on the assumptions entered and do not replace accounting, tax or financial advice.
The core formula

Break-even happens when contribution profit covers fixed costs.

Break-even units Fixed costs ÷ (selling price − variable cost)

For a revenue-only calculation, divide fixed costs by the gross margin percentage expressed as a decimal.

Use the result

Three numbers to watch after calculating

01

Contribution margin

The amount each sale contributes toward fixed costs and profit after direct variable costs.

02

Break-even revenue

The minimum sales revenue needed before the business begins producing operating profit.

03

Margin of safety

The distance between expected sales and break-even. A larger cushion generally means less operating risk.