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Break-Even Point Calculator

How many sales do you need before your business stops losing money? This calculator shows the break-even point (the number of units and the revenue that exactly cover your costs) from the fixed costs, the selling price and the variable cost of each unit. Enter the units you expect to sell too and see the profit and the margin of safety.

Enter the period's fixed costs (rent, salaries) and, per unit, the selling price and the variable cost. The break-even point is the number of sales that covers the fixed costs. Use amounts excluding VAT.

Break-even point (units)
100
Break-even point (revenue)
€5,000.00

How the result is reached

Contribution margin per unit€20.00
Contribution margin (% of price)40%
Units to break even100
Revenue at break-even€5,000.00
Profit at 150 units€1,000.00
Margin of safety (above break-even)50 (33.33%)

Educational estimate, not financial advice. It assumes a single product with constant fixed and variable costs; it does not include taxes on the profit or a mix of products with different margins.

What the break-even point is

The break-even point is the level of sales at which the result is zero: revenue covers all costs, with neither profit nor loss. Below it the business loses money; above it, it starts to earn. It is the first number to know before opening or launching a product.

The contribution margin is the engine

Each sale first pays its own variable cost, and what is left over contributes towards the fixed costs. That leftover is the contribution margin per unit: contribution margin = selling price − variable cost. For example, selling for €50 something with a €30 variable cost gives a €20 contribution margin per unit.

Working out the units and the revenue

The break-even point in units is the fixed costs divided by the contribution margin per unit: €2,000 ÷ €20 = 100 units. The break-even revenue is those units times the price: 100 × €50 = €5,000. From the hundredth sale on, each extra unit adds its €20 margin to profit.

Fixed costs and variable costs

Fixed costs do not change with the number of sales in the period (rent, salaries, insurance, software). Variable costs follow each sale (raw materials, packaging, commissions, shipping). That distinction is what makes the calculation possible, so classify each expense carefully before entering it.

Margin of safety

If you enter the units you expect to sell, the calculator shows the profit at that volume and the margin of safety: how far sales can fall before hitting the break-even point. Selling 150 units when break-even is 100 gives a margin of safety of 50 units, or 33%: sales can drop by a third before the business turns to a loss.

Worked example

A workshop has €2,000 of fixed costs a month (rent, electricity, software). Each job sells for €50 and has €30 of variable cost (parts and consumables), so the contribution margin is 50 − 30 = €20 per job. The break-even point is 2,000 ÷ 20 = 100 jobs a month, that is 100 × 50 = €5,000 of revenue. If the workshop does 150 jobs, the profit is 20 × 150 − 2,000 = €1,000, with a margin of safety of 50 jobs (33%).

Frequently asked questions

What is the break-even point?
It is the level of sales at which revenue covers all costs, with neither profit nor loss. Below the break-even point the business loses money; above it, it starts to make a profit.
How do you calculate the break-even point?
Divide the fixed costs by the contribution margin per unit (selling price − variable cost). With €2,000 of fixed costs and a €20 margin per unit, the break-even point is 2,000 ÷ 20 = 100 units.
What is the contribution margin?
It is what each sale leaves to pay the fixed costs after covering its own variable cost: contribution margin = selling price − variable cost. Multiplied by the units above break-even, it gives the profit.
What is the difference between fixed and variable costs?
Fixed costs do not change with the volume of sales in the period (rent, salaries, insurance). Variable costs vary with each sale (raw materials, packaging, commissions). Only the fixed costs go into the division; the variable ones are already in the contribution margin.
Is the calculation with or without VAT?
Use amounts excluding VAT, both for the price and the costs. VAT is charged to the customer and handed to the State, so it is neither revenue nor a cost of the business. To add or remove VAT, use the VAT calculator.
What if I sell several different products?
This calculator assumes a single product (or an average service). With several products of different margins, the break-even point depends on the sales mix; use it per product or with an average contribution margin for the whole.

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Author: Thorben Rasmus Idel · Reviewed by: Nahar Geva · Last reviewed: 2026-06-23