Break Even Calculator
Work out your break-even point, how many units you need to sell to cover your fixed and variable costs before you start making a profit.
How we estimate this
Your break-even point is the number of units where total revenue equals total costs. It’s fixed costs ÷ contribution margin, where the contribution margin is your selling price minus the variable cost per unit.
Pricing reviewed: June 2026.
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Understanding break evens in Australia
Your break-even point is the number of units where total revenue equals total costs. It’s fixed costs ÷ contribution margin, where the contribution margin is your selling price minus the variable cost per unit.
Lowering fixed costs, raising price, or cutting the variable cost per unit all reduce the number of units you need to break even. If your price is below your variable cost, there’s no break-even, you lose money on every sale.
Frequently asked questions
How do you calculate the break-even point?
Break-even units = fixed costs ÷ (selling price − variable cost per unit). Multiply by price for break-even revenue.
What is contribution margin?
The selling price per unit minus the variable cost per unit, the amount each sale contributes toward covering fixed costs.
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