Pricing & Profit calculator
Break-even Calculator
Calculate contribution margin, break-even units, and break-even revenue from fixed costs, selling price, and variable cost per unit.
Why use it
- Useful for testing whether the current selling price gives you enough contribution per unit.
- If contribution margin is zero or negative, the business cannot break even at that price.
- Break-even units are shown as an exact figure, but operators usually round up to the next full unit in practice.
Calculator tool
Use the break-even calculator
Calculate contribution margin, break-even units, and break-even revenue from fixed costs, selling price, and variable cost per unit.
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Email it to yourself, send it to a customer, or copy the figures into a quote — all without an account.
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Important note
BizTools.au is designed to make business numbers easier to check, but calculator outputs still need judgment and real-world context.
- Calculator results are general estimates only and depend on the figures entered.
- Examples and summaries are provided for general information, not legal, tax, accounting, payroll, or financial advice.
- Before relying on a result for a real decision, check your assumptions and get qualified advice where needed.
How it works
Understand the formula before you use the result
The calculator uses a simple working formula so you can sense-check the result quickly and explain it clearly inside your business.
Break-even formula
Contribution margin per unit = Selling price per unit - Variable cost per unit
Break-even units = Fixed costs / Contribution margin per unit
Break-even revenue = Break-even units × Selling price per unit
Contribution margin is the amount each unit contributes toward fixed costs after variable cost is covered.
Worked example
See the numbers in a realistic scenario
Use the example below as a sense check when you compare the calculator result to a real quote, sale, or pricing decision.
Worked example
Worked example: covering monthly overheads
A business has $10,000 of fixed monthly costs, charges $150 per unit, and spends $90 in variable cost per unit.
- Fixed costs: $10,000
- Selling price per unit: $150
- Variable cost per unit: $90
Calculation steps
- Contribution margin = $150 - $90 = $60 per unit
- Break-even units = $10,000 / $60 = 166.67 units
- Break-even revenue = 166.67 × $150 = $25,000
The business needs about 167 units in practice to cover fixed monthly costs at that price and cost structure.
FAQ
Common questions about the break-even calculator
These are the practical questions operators usually run into when they apply the result to a real business decision.
What counts as a fixed cost?
Fixed costs are the overheads that do not usually change with each extra unit sold, such as rent, software, admin wages, or insurance for the period you are analysing.
What if my contribution margin is zero or negative?
Then each sale is contributing nothing or less than nothing toward fixed costs. At that price and cost structure, a break-even point does not exist.
Should break-even units be rounded up?
Usually yes. The formula can return a decimal, but real businesses often need to sell the next whole unit, hour, or job to fully cover costs.
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