Break-Even Point Calculator
From fixed cost, price and variable cost, compute contribution per unit, contribution margin and the break-even units and revenue.
Input Data
Results
At a glance:contribution per unit = price - variable cost; contribution margin = contribution / price; break-even units = fixed cost / contribution per unit; break-even revenue = break-even units x price. Example: fixed 50k, price 200, variable 120 → contribution 80, margin 40%, break-even 625 units / HK$125,000. Below it you lose; above it each unit adds HK$80. It assumes one product and constant costs; it shows the floor, not the target profit. WARNING: Multi-product mixes and step costs change the result. Education only, not advice.
Formula
Contribution per unit = Price − Variable cost per unit.
Break-even units = Fixed cost / Contribution per unit.
Break-even revenue = Break-even units × Price.
$$\text{CM} = P - V$$$$Q_{\text{BE}} = \dfrac{FC}{P - V}$$$$R_{\text{BE}} = Q_{\text{BE}} \times P$$How to Use
- Enter the fixed cost, price per unit and variable cost per unit.
- View contribution per unit, the margin, and break-even units and revenue.
FAQ
What is the break-even point?
The sales volume where total revenue equals total cost — zero profit, zero loss. Below it you lose; above it you profit. It is the basic safety line for any business.
What is contribution margin?
Contribution per unit = price - variable cost; the margin is that as a share of price. It is the money each unit contributes toward fixed cost and profit. A higher margin means fewer units to break even.
How do I use it for pricing?
Raise price → higher contribution → lower break-even units (but watch demand). Cut variable cost → same effect. Cut fixed cost → lower break-even revenue. Use it to test price/volume scenarios before setting a price or writing a plan. Pair with the margin and burn-rate calculators.
Does break-even consider profit?
No — it is the zero-profit point. To target a profit, add it to fixed cost: units = (fixed cost + target profit) / contribution. Always plan for a profit target, not just survival.
Any Hong Kong business notes?
For Hong Kong SMEs, break-even underpins pricing, quoting and cash-flow planning and supports profits-tax budgeting. Keep sufficient books (Inland Revenue Ordinance, generally 7 years). For multi-product firms use a weighted-average contribution margin. This tool is educational; consult an accountant for filing.
Related Tools
References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.