Owner Track worksheet
Break-Even Point: Formula, Analysis & Free Calculator
The formula
Break-Even Units = Fixed Costs ÷ (Price per unit − Variable Cost per unit)
Break-Even Revenue = Fixed Costs ÷ Contribution Margin Ratio
Illustrative example
Examples use made-up numbers. Education only, not tax, legal or investment advice.
| Fixed Costs | Price/Unit | Variable Cost/Unit | Contribution Margin/Unit | Break-Even Units | Break-Even Revenue |
|---|---|---|---|---|---|
| $50,000 | $25.00 | $15.00 | $10.00 | 5,000 | $125,000 |
Your numbers
| Fixed Costs | Price/Unit | Variable Cost/Unit | Contribution Margin/Unit | Break-Even Units | Break-Even Revenue |
|---|---|---|---|---|---|
Estimates depend on your inputs.