# Break-Even Calculator

Calculate the break-even point for a product or business based on fixed costs, variable costs, and price

> Canonical page: https://elysiatools.com/en/tools/break-even-calculator

- **Category:** Math & Numbers

- **Keywords:** break-even, calculator, fixed costs, variable costs, profit, business, break-even calculator

## Overview

The Break-Even Calculator helps you determine the exact sales volume required to cover all your costs and reach profitability. By inputting your fixed costs, variable costs per unit, and selling price, you can quickly identify the point where your business transitions from loss to profit.

## Inputs

- **Fixed Costs** (number): Enter total fixed costs (rent, salaries, etc.)
- **Variable Cost Per Unit** (number): Enter variable cost per unit (materials, labor, etc.)
- **Price Per Unit** (number): Enter selling price per unit
- **Currency** (select)

## When to use

- Before launching a new product to determine minimum sales targets.
- When evaluating the impact of changing your pricing strategy.
- During budget planning to assess how cost fluctuations affect your bottom line.

## How it works

- Enter your total fixed costs, such as rent, salaries, and insurance.
- Input the variable cost per unit, which includes materials and direct labor.
- Provide the selling price per unit for your product or service.
- Click calculate to see the number of units you must sell to break even.

## Use cases

- Determining the viability of a startup business model.
- Setting realistic sales quotas for a sales team.
- Analyzing the impact of cost-cutting measures on profitability.

## Frequently asked questions

### What are fixed costs?

Fixed costs are expenses that remain constant regardless of how many units you produce or sell, such as office rent or annual software subscriptions.

### What are variable costs?

Variable costs are expenses that change in direct proportion to your production volume, such as raw materials, packaging, and shipping fees per unit.

### Does the calculator account for taxes?

This tool calculates the pre-tax break-even point based on your provided costs and pricing.

### Can I use this for service-based businesses?

Yes, simply treat your hourly labor or service delivery costs as variable costs and your service fee as the price per unit.

### What happens if my price is lower than my variable cost?

If your price per unit is lower than your variable cost, you will never reach a break-even point, as you lose money on every unit sold.

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