Break-even point calculator

Find how many units you need to sell to cover costs and start making a profit.

Units to break even

500

Revenue at break-even$25,000.00

Contribution margin (unit)$20.00

Contribution margin (%)40%

Above this number of sales you turn a profit; below it, a loss.

Interactive lesson: The math that sinks small businesses Buy at $100 and sell at $150: the margin is not 50%, it is 33%. See why the two numbers never match.

How the calculation works

The break-even point is how many units you must sell to have neither profit nor loss — where revenue exactly covers all costs.

First, the contribution margin — what each sale leaves to cover fixed costs:

contribution margin = price − variable cost (per unit)

Then, break-even in units:

break-even = fixed costs ÷ contribution margin

Step-by-step example

Fixed costs R$5,000/month, product sold at R$50 with R$30 variable cost:

Margin: 50 − 30 = R$20 per unit
Break-even: 5,000 ÷ 20 = 250 units/month

At 250 you break even. From unit 251 on, each adds R$20 of profit.

Examples

Fixed R$8,000, price R$100, variable R$60: 8,000 ÷ 40 = 200 units.
If the per-unit margin halves, the break-even doubles.

Frequently asked questions

Fixed vs variable costs?

Fixed costs do not change with sales (rent, salaries); variable costs change per unit (materials, commission).

How to lower the break-even?

Raise the margin (higher price or lower variable cost) or cut fixed costs. Either lowers the sales target.

Can I compute it in revenue instead of units?

Yes: multiply the unit break-even by the price, or use fixed costs ÷ (margin ÷ price).

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Updated on June 18, 2026 · by Rafael Rossi · Methodology & sources