The break-even point is the number of units that you must sell in order to make a profit of zero. You can use this calculator to determine the number of units required to break even. Our online tool makes break-even analysis simple and easy.
Simply enter your fixed and variable costs, the selling price per unit and the number of units expected to be sold. Then, click the "Calculate" button to see the results.
Break Even Point Formula and Example
The Break Even Calculator uses the following formulas:
Q = F / (P − V) , or Break Even Point (Q) = Fixed Cost / (Unit Price − Variable Unit Cost)
Where:
Q is the break even quantity,
F is the total fixed costs,
P is the selling price per unit,
V is the variable cost per unit.
Total Variable Cost = Expected Unit Sales × Variable Unit Cost
Total Cost = Fixed Cost + Total Variable Cost
Total Revenue = Expected Unit Sales × Selling Price Per Unit
Profit = Total Revenue − Total Costs
Example: Suppose a company produces and sells a product with the following values:
- Fixed Costs = $40,000
- Variable Cost Per Unit = $5
- Selling Price Per Unit = $10
In this example, the break-even point would be calculated as follows:
Q = $40,000 / ($10 − $5) = $40,000 / $5
Q = 8,000 units, the break-even point in unit sales is 8,000
The break-even point is the number of units that you must sell in order to make a profit of zero. You can use this calculator to determine the number of units required to break even. Our online tool makes break-even analysis simple and easy.
Simply enter your fixed and variable costs, the selling price per unit and the number of units expected to be sold. Then, click the "Calculate" button to see the results.
Break Even Point Formula and Example
The Break Even Calculator uses the following formulas:
Q = F / (P − V) , or Break Even Point (Q) = Fixed Cost / (Unit Price − Variable Unit Cost)
Where:
Q is the break even quantity,
F is the total fixed costs,
P is the selling price per unit,
V is the variable cost per unit.
Total Variable Cost = Expected Unit Sales × Variable Unit Cost
Total Cost = Fixed Cost + Total Variable Cost
Total Revenue = Expected Unit Sales × Selling Price Per Unit
Profit = Total Revenue − Total Costs
Example: Suppose a company produces and sells a product with the following values:
- Fixed Costs = $40,000
- Variable Cost Per Unit = $5
- Selling Price Per Unit = $10
In this example, the break-even point would be calculated as follows:
Q = $40,000 / ($10 − $5) = $40,000 / $5
Q = 8,000 units, the break-even point in unit sales is 8,000