Gombo Tools
Use this free break-even calculator to estimate how many units you need to sell before covering your costs. Enter your fixed costs, selling price per unit, and variable cost per unit to calculate your break-even units, break-even revenue, and contribution margin. It is useful for pricing, sales targets, product launches, and business planning.
Result overview
Fixed costs
500,000
Variable costs at break-even
333,320
Break-even revenue
833,333.33
Break-even units
83.33
Contribution per unit
6,000
Contribution margin ratio
60%
The break-even point is the sales level where total revenue covers total costs. At this point, the business is not making a profit or a loss. To calculate it, you need fixed costs, selling price per unit, and variable cost per unit.
Contribution per unit = Selling price per unit − Variable cost per unit
Contribution per unit shows how much each sale contributes toward covering fixed costs after variable costs are paid.
Contribution margin ratio = Contribution per unit ÷ Selling price per unit
Contribution margin ratio shows the percentage of each sale that contributes to fixed costs and profit.
Break-even units = Fixed costs ÷ Contribution per unit
Break-even units show how many units you need to sell to cover your fixed costs.
Break-even revenue = Fixed costs ÷ Contribution margin ratio
Break-even revenue shows the total sales amount needed to cover all costs.
You need to sell 500 units, generating 25,000 in revenue, to cover your fixed costs.
You need about 84 service sales to cover your fixed costs.
Gombo helps you create invoices, track payments, monitor revenue, and manage business operations from one connected platform.