Breakeven Point Calculator

Determine the exact point where your business or product becomes profitable with our Breakeven Point (BEP) Calculator. This essential tool helps you understand how many units you need to sell or how much revenue you need to generate to cover all your costs.

How to Use This Calculator

1. Enter Total Fixed Costs ($): These are costs that don't change with sales volume, such as rent, salaries, and insurance.
2. Enter Variable Cost Per Unit ($): This is the cost to produce one unit of your product, including materials and direct labor.
3. Enter Price Per Unit ($): This is the price at which you sell one unit of your product.
4. Click "Calculate": The tool will instantly show your breakeven point in both units and revenue.

Understanding Your Breakeven Results

The calculator provides three key numbers:

• Contribution Margin Per Unit: This is your `Price Per Unit` minus your `Variable Cost Per Unit`. It's the amount each sale "contributes" towards covering your fixed costs and generating profit.
• Breakeven Point (Units): The total number of units you must sell to cover all your costs. Any unit sold after this point is pure profit.
• Breakeven Point (Revenue): The total dollar amount in sales you must achieve to cover all your costs.

The Formulas Used

Our tool uses these standard accounting formulas:

Contribution Margin Per Unit = Price Per Unit - Variable Cost Per Unit

Breakeven Point (Units) = Total Fixed Costs / Contribution Margin Per Unit

Breakeven Point (Revenue) = Breakeven Point (Units) * Price Per Unit

Why is the Breakeven Point Important?

Knowing your breakeven point is critical for pricing strategies, setting sales goals, and making informed decisions about new products. If your breakeven point is too high, you may need to find ways to lower your fixed costs, reduce your variable costs, or increase your selling price.