Break-Even Point Calculator: Units and Revenue
Break-even units and revenue from fixed and variable costs.
Use via API
Break-even point: units and revenue needed to cover fixed costs, with contribution margin and an optional target profit. Send JSON, get JSON back.
POST https://pithlab.com/api/v1/tools/break-even-calculator
curl https://pithlab.com/api/v1/tools/break-even-calculator \
-H "Authorization: Bearer $PITHLAB_KEY" \
-H "Content-Type: application/json" \
-d '{"fixedCosts":10000,"price":50,"variableCost":30,"targetProfit":5000}'About the Break-Even Calculator
Find how many units you need to sell, and how much revenue you need, to cover your fixed costs. Optionally add a target profit to plan sales.
How to use the Break-Even Calculator
- Enter your fixed costs for the period, such as rent and salaries.
- Enter the selling price per unit and the variable cost per unit.
- Read the units and revenue needed to break even, and optionally add a target profit.
Examples
Input
10000, 50, 30
Output
Break even at 500 units (500 exact), revenue 25,000.00; each unit contributes 20.00
Frequently asked questions
How is the break-even point calculated?
Break-even units = fixed costs ÷ (price − variable cost per unit). The amount each unit adds after its own variable cost is the contribution margin, and enough units must be sold for those contributions to cover the fixed costs.
Why does the price have to be higher than the variable cost?
If each unit costs as much as or more than it sells for, every sale adds nothing or loses money, so no amount of sales can cover the fixed costs.
Why is the number of units rounded up?
You can't sell part of a unit, and selling one fewer than the exact figure would still leave a small loss, so the units to sell are rounded up to the next whole unit.