Breakeven Calculator
How many units must you sell to cover fixed costs? The most important number in any business case.
Free · No signup · By the analysts at Blackridge Research · Updated 2026-07-18
Inputs
Results
What this means
Adjust the inputs to calculate.
About the Breakeven Calculator
Breakeven analysis determines how many units you must sell to cover all costs.
It is the most important number in any business case or investment decision.
Formula
Breakeven Units = Fixed Costs / (Price - Variable Cost per Unit)
- BE
- — Breakeven Units
- FC
- — Fixed Costs
- P
- — Price per Unit
- VC
- — Variable Cost per Unit
How to use this calculator
- 1
Enter fixed costs
Total fixed costs (rent, salaries, etc.).
- 2
Enter price per unit
The selling price of each unit.
- 3
Enter variable cost per unit
The cost to produce each unit.
Example calculations
Product launch breakeven
A new product has $50,000 in fixed costs, sells for $100, and costs $60 to produce.
Breakeven = $50,000 / ($100 - $60) = 1,250 units.
- Breakeven units:
- 1,250
- Contribution margin:
- $40
You need to sell 1,250 units to break even. Each unit contributes $40 to fixed costs.
Interpreting your results
Breakeven analysis shows the minimum sales required to avoid losses.
Lower breakeven points indicate lower risk and better business models.
Need the market data behind this calculator?
The Breakeven Calculator is only as good as its inputs. Blackridge Research publishes syndicated market reports with vetted market sizes, growth rates, and competitive landscapes across 40+ industries — and builds custom studies when the shelf report doesn't exist.
Industry applications
Business
- Business planning: determine minimum sales targets.
- Pricing decisions: set prices to achieve desired breakeven.
- Investment cases: assess business viability.
Construction
- Project costing: determine project breakeven points.
- Equipment purchases: calculate breakeven usage.
Research
- Feasibility studies: breakeven analysis is essential.
- Market research: determine market size needed to break even.
Common mistakes to avoid
-
✗ Ignoring fixed costs
Include all fixed costs — rent, salaries, marketing, etc.
-
✗ Using variable costs incorrectly
Variable costs change with production volume. Use accurate per-unit costs.
Frequently asked questions
›What is a good breakeven point?
Lower is better. A breakeven point below 50% of expected sales indicates low risk.
›How can I lower my breakeven point?
Reduce fixed costs, increase prices, or reduce variable costs.
Glossary
- Breakeven point:
- The sales volume at which total revenue equals total costs.
- Contribution margin:
- Price minus variable cost per unit — the amount covering fixed costs.
- Fixed costs:
- Costs that don't change with production volume.
- Variable costs:
- Costs that change with production volume.
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