{
  "id": "break-even",
  "version": "5bea605170f7",
  "status": "published",
  "name": "Break-Even Calculator",
  "question": "Break even point: how many to sell?",
  "summary": "Computes the break-even point in units and in sales dollars from fixed costs, price per unit and variable cost per unit, or the units to sell for a target profit.",
  "category": "finance",
  "subcategory": "business",
  "url": "https://www.acalculator.org/finance/break-even-calculator",
  "markdown": "https://www.acalculator.org/finance/break-even-calculator.md",
  "kind": "function",
  "method": "Contribution margin = price − variable cost; break-even units = (fixed costs + target profit) ÷ margin, rounded up; sales dollars = (fixed costs + target profit) ÷ (margin ÷ price).",
  "assumptions": [
    "Price, variable cost per unit and fixed costs stay the same at every level of sales in the period.",
    "Every unit made is sold. Taxes are left out.",
    "Fixed costs, price and target profit are for the same period (a month or a year)."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "fc": {
        "title": "Fixed costs",
        "description": "Costs that stay the same however much you sell, such as rent and salaries, for the period.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000
      },
      "p": {
        "title": "Price per unit",
        "description": "What you charge for one unit.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000
      },
      "vc": {
        "title": "Variable cost per unit",
        "description": "What one more unit costs you to make or sell, such as materials.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000
      },
      "tp": {
        "title": "Target profit",
        "description": "The profit you want for the period. 0 finds the break-even point.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000
      }
    }
  },
  "outputs": {
    "units": {
      "label": "Units to sell",
      "description": "The exact units rounded up to a whole unit.",
      "format": "integer"
    },
    "exactUnits": {
      "label": "Units (exact)",
      "description": "(Fixed costs + target profit) ÷ contribution margin per unit.",
      "format": "number"
    },
    "sales": {
      "label": "Sales in dollars",
      "description": "(Fixed costs + target profit) ÷ contribution margin ratio: the revenue at the exact units.",
      "format": "money"
    },
    "margin": {
      "label": "Contribution margin per unit",
      "description": "Price − variable cost per unit.",
      "format": "money"
    },
    "ratio": {
      "label": "Contribution margin ratio",
      "description": "Contribution margin per unit ÷ price, as a percent.",
      "format": "percent"
    },
    "profitAtUnits": {
      "label": "Profit at the whole units",
      "description": "Margin × whole units − fixed costs: the profit when you sell the rounded-up units.",
      "format": "money"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "fc": 18000,
      "p": 100,
      "vc": 20,
      "tp": 0
    },
    "outputs": {
      "units": 225,
      "exactUnits": 225,
      "sales": 22500,
      "margin": 80,
      "ratio": 80,
      "profitAtUnits": 0
    },
    "text": "Units to sell: 225, or $22,500.00 in sales, to cover your fixed costs and target profit."
  },
  "examples": [
    {
      "given": {
        "fc": 18000,
        "p": 100,
        "vc": 20
      },
      "expect": {
        "units": 225,
        "exactUnits": 225,
        "sales": 22500,
        "margin": 80,
        "ratio": 80
      },
      "source": "OpenStax, Principles of Accounting, Volume 2: Managerial Accounting, §3.2 Calculate a Break-Even Point in Units and Dollars. https://openstax.org/books/principles-managerial-accounting/pages/3-2-calculate-a-break-even-point-in-units-and-dollars (fixed costs $18,000, price $100, variable cost $20: 225 units or $22,500)"
    },
    {
      "given": {
        "fc": 14000,
        "p": 400,
        "vc": 150
      },
      "expect": {
        "units": 56,
        "sales": 22400,
        "margin": 250,
        "ratio": 62.5
      },
      "source": "OpenStax, Principles of Accounting, Volume 2: Managerial Accounting, §3.2 Calculate a Break-Even Point in Units and Dollars. https://openstax.org/books/principles-managerial-accounting/pages/3-2-calculate-a-break-even-point-in-units-and-dollars (fixed costs $14,000, charge $400, variable cost $150: 56 returns or $22,400)"
    },
    {
      "given": {
        "fc": 16800,
        "p": 1250,
        "vc": 850
      },
      "expect": {
        "units": 42,
        "sales": 52500,
        "ratio": 32
      },
      "source": "OpenStax, Principles of Accounting, Volume 2: Managerial Accounting, §3.2 Calculate a Break-Even Point in Units and Dollars. https://openstax.org/books/principles-managerial-accounting/pages/3-2-calculate-a-break-even-point-in-units-and-dollars (fixed costs $16,800, price $1,250, variable cost $850: 42 units or $52,500)"
    },
    {
      "given": {
        "fc": 3000,
        "p": 35,
        "vc": 20,
        "tp": 1000
      },
      "expect": {
        "exactUnits": 266.6666666666667,
        "units": 267,
        "sales": 9333.333333333334,
        "profitAtUnits": 1005
      },
      "source": "OpenStax, Principles of Accounting, Volume 2: Managerial Accounting, §3.2 Calculate a Break-Even Point in Units and Dollars. https://openstax.org/books/principles-managerial-accounting/pages/3-2-calculate-a-break-even-point-in-units-and-dollars (target profit: (fixed costs + desired profit) ÷ contribution margin per unit); hand calculation in content.mdx: (3,000 + 1,000) ÷ 15 = 266.67, rounded up to 267"
    }
  ],
  "sources": [
    "OpenStax, Principles of Accounting, Volume 2: Managerial Accounting, §3.2 Calculate a Break-Even Point in Units and Dollars (break-even units = fixed costs ÷ contribution margin per unit; dollars = fixed costs ÷ contribution margin ratio; target profit; Hicks Manufacturing, Marshall & Hirito and Channing’s Chairs examples). https://openstax.org/books/principles-managerial-accounting/pages/3-2-calculate-a-break-even-point-in-units-and-dollars (retrieved 2026-10-02)",
    "U.S. Small Business Administration, Calculate your startup costs (fixed and variable costs for a new business). https://www.sba.gov/business-guide/plan-your-business/calculate-your-startup-costs (retrieved 2026-10-02)"
  ],
  "related": [
    "profit",
    "margin",
    "gross-margin",
    "markup"
  ],
  "changelog": []
}