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Break Even Calculator

Break-even Calculator

Fixed costs ($)

Selling price per unit ($)

Variable cost per unit ($)

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Detailed Guide Coming Soon

We're working on a comprehensive educational guide for the Break Even Calculator in your language. The content below is shown in English.

What is Break Even Calculator?

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The break-even point is the level of sales at which total revenue equals total costs — producing neither a profit nor a loss. It is one of the most fundamental concepts in business planning, telling you the minimum output needed to cover all costs.

Calkulon makes complex calculations simple — built for students and everyday problem-solvers.

How to Break Even Calculator

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1List all fixed costs (rent, salaries, insurance) — costs that do not change with output
2Identify the selling price per unit and variable cost per unit
3Calculate contribution margin: Selling price − Variable cost per unit
4Divide total fixed costs by the contribution margin to get break-even units

Worked Examples

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Example 1

Given:Fixed costs £5,000 · Price £20 · Variable cost £12

ಫಲಿತಾಂಶ:625 units

5000 ÷ (20−12) = 625

Example 2

Given:Fixed costs $10,000 · Price $50 · Variable cost $30

ಫಲಿತಾಂಶ:500 units

$10,000 ÷ $20 = 500

Special Cases

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Multiple products

When selling several products, calculate a weighted average contribution margin based on the sales mix before dividing fixed costs.

Break-even revenue

Multiply break-even units by price per unit to get break-even revenue in currency terms.

Break-even sensitivity — effect of price increases

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Price increase	Contribution margin	Break-even units (FC=$10k, VC=$30)
+$0 ($50)	$20	500
+$5 ($55)	$25	400
+$10 ($60)	$30	333
+$20 ($70)	$40	250

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Pro Tip

Lowering variable costs often has a bigger impact on break-even than raising prices, because it improves every unit sold.

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Did you know?

The term "break-even analysis" was popularised in the 1930s by Walter Rautenstrauch, though merchants have instinctively calculated it for centuries.

References

ಮಾಹಿತಿ ಉದ್ದೇಶಗಳಿಗಾಗಿ ಮಾತ್ರ. ಈ ಸಾಧನವು ಹಣಕಾಸು ಸಲಹೆಯಲ್ಲ. ಹೂಡಿಕೆ ಅಥವಾ ಹಣಕಾಸು ನಿರ್ಧಾರಗಳನ್ನು ತೆಗೆದುಕೊಳ್ಳುವ ಮೊದಲು ಅರ್ಹ ಹಣಕಾಸು ಸಲಹೆಗಾರರನ್ನು ಸಂಪರ್ಕಿಸಿ.

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Break-Even vs Profit Margin

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Reviewed October 2026

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Break Even Calculator