Break-Even Calculator
Free Break-Even Calculator: calculate the break-even point in units as =FixedCosts/(PricePerUnit-VariableCostPerUnit); multiply by the price for...
Break-even revenue: €12,500.00 · Contribution margin per unit: €10.00
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Ships inside the linked template — formula-driven, unlocked, audit-ready.
How it works
In Excel or Google Sheets, calculate the break-even point in units as =FixedCosts/(PricePerUnit-VariableCostPerUnit); multiply by the price for break-even revenue.
Put fixed costs, price per unit, and variable cost per unit in three cells.
Compute units: =B2/(B3-B4). Round UP with ROUNDUP(...,0) — you cannot sell half a unit.
Compute revenue: units × price.
Chart cost and revenue lines against quantity if you want the visual crossing point.
What this does
The break-even point is where revenue covers all costs. The denominator (price minus variable cost) is the contribution margin: what each sold unit contributes toward fixed costs. Divide fixed costs by it and you get the number of units at which profit is exactly zero — every unit beyond that is profit.
A worked example
Fixed costs are €5,000 per month, the product sells for €25, and each unit costs €15 to make. =5000/(25-15) returns 500 units; break-even revenue is 500×€25 = €12,500. At 499 units the month is a loss; at 501 it is profitable. Break-even is the first sanity check for any product, side project, or pricing change: how many sales until this stops costing money?
Common mistakes
- Mixing time frames — monthly fixed costs against an annual sales target.
- Forgetting per-unit costs like shipping or payment fees in the variable cost.
- A price below variable cost: the margin is negative and no volume ever breaks even.
- Treating semi-fixed costs (a second machine at 2× volume) as flat across all quantities.
FAQ
What is the break-even formula in Excel?
=FixedCosts/(Price-VariableCost) for units. There is no built-in BREAKEVEN function.
How do I make a break-even chart?
Build a quantity column, compute total cost (fixed + variable×qty) and revenue (price×qty), and plot both as lines — they cross at break-even.
Can I solve for the price instead?
Yes — use Goal Seek (Data ▸ What-If Analysis): set the profit cell to 0 by changing the price cell.
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