Break Even Point Calculator

Break-Even Analysis Tool

Input Fields

Fixed costs

FC

$

Costs that remain constant regardless of the number of units sold

Price per unit

P

$

Selling price for each unit

Variable cost per unit

VC

$

Cost incurred for producing one additional unit

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Calculate automaticallyIf enabled, the result will update automatically when you change any value.

Your Results

Break Even Point

Interpretation

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Break Even Formula

$$\text{Break Even Point (units)} = \frac{\text{Fixed Costs}}{\text{Selling Price per Unit} – \text{Variable Cost per Unit}}$$

Explanation:
This formula calculates the number of units that must be sold to cover all costs. It’s a critical metric for assessing financial viability and planning revenue targets.

Break-even analysis is vital for understanding the minimum performance needed to avoid losses. It’s commonly used in business planning, pricing strategy, and cost control. This calculator supports scenarios such as:

• Launching a new product
• Evaluating cost structures
• Pricing decisions

Example Variables:

• Fixed Costs: $10,000
• Selling Price per Unit: $50
• Variable Cost per Unit: $30
• Break Even Point = 10,000 / (50 – 30) = 500 units

Use Cases:

• Startups forecasting ROI
• Marketing campaign viability
• Profitability modeling