Break-Even Calculator

Behind the result

About this Tool

Calculate contribution margin, break-even units, and break-even revenue from a simple cost model.

How it works

Divides fixed costs by price minus variable cost, then rounds units up to the next whole sale.

Worked example

With $1,000 in monthly fixed costs, a $30 selling price and $18 variable cost per unit, each sale contributes $12. Divide $1,000 by $12 to get 83.33 units. This tool rounds up to 84 units and reports $2,520 in revenue: 84 × $30.

Assumptions and limits

Use one currency and one time period. The model assumes one product, a constant selling price and constant variable cost per unit. It does not predict demand or account for changes in costs as sales grow. Include all relevant costs in your own estimates.

Why can break-even revenue be higher than the exact threshold?

OnTap multiplies the rounded whole-unit count by the selling price. In this example the continuous threshold is $2,500, but selling 84 whole units brings in $2,520. If variable cost equals or exceeds price, additional sales cannot cover positive fixed costs in this model.

Reference and maintenance

U.S. Small Business Administration: break-even formula and cost definitions

Guidance maintained by OnTap. Content updated September 17, 2026.

Use results as a practical aid, and verify important decisions against your own source data and qualified guidance.