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Break Even Calculator FullScreen

The break-even point is the number of units that you must sell in order to make a profit of zero. You can use this calculator to determine the number of units required to break even. Our online tool makes break-even analysis simple and easy.

Break Even Analysis Calculator

Break-Even Analysis Chart



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Break Even Point Formula and Example

The Break Even Calculator uses the following formulas:

Q = F / (P − V) , or Break Even Point (Q) = Fixed Cost / (Unit Price − Variable Unit Cost)

Where:

Q  is the break even quantity,

F  is the total fixed costs,

P  is the selling price per unit,

V  is the variable cost per unit.

Total Variable Cost = Expected Unit Sales × Variable Unit Cost

Total Cost = Fixed Cost + Total Variable Cost

Total Revenue = Expected Unit Sales × Selling Price Per Unit

Profit = Total Revenue − Total Costs

Example: Suppose a company produces and sells a product with the following values:

  • Fixed Costs = $40,000
  • Variable Cost Per Unit = $5
  • Selling Price Per Unit = $10

In this example, the break-even point would be calculated as follows:

Q = $40,000 / ($10 − $5) = $40,000 / $5

Q = 8,000 units, the break-even point in unit sales is 8,000