Break-Even Point Calculator

How to Calculate Your Break-Even Point

In business and corporate finance, the break-even point is the exact production level at which total revenues completely equal total expenses. Beyond this point, an enterprise has "broken even" and begins generating pure profit for every additional unit sold.

The Break-Even Formula

Interpreting Your Margin

The "Contribution Margin" is simply the selling price minus your variable cost per unit. This margin is the specific dollar amount that each sale "contributes" directly toward paying off your fixed costs. The lower your contribution margin, the more units you simply must sell to stay afloat.