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Break-Even Point Calculator — Calculate BEP in Units & Revenue

$

Rent, salaries, etc.

$

Cost to produce one item.

$

Selling price of one item.

Break-Even Units
334
items to sell
Break-Even Revenue
$16,666.67
in total sales
Contribution Margin (per unit)
$30.00
Contribution Margin Ratio
60.0%
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Determine Business Feasibility Instantly

Before launching a new product or starting a business, you need to know exactly how much you must sell to cover your costs. Our Break-Even Point (BEP) calculator helps you determine the exact number of units you need to sell to reach profitability.

By entering your fixed costs, variable costs per unit, and target selling price, you can instantly see your break-even revenue and contribution margin ratio.

Common Fixed vs Variable Costs

Cost CategoryExamples
Fixed CostsRent, Insurance, Salaries, Marketing Retainers, Software Subscriptions
Variable CostsRaw Materials, Packaging, Shipping/Freight, Payment Processing Fees (Stripe)

Tips for Lowering Your Break-Even Point

  • Reduce fixed costs: Negotiate cheaper rent, switch to affordable software, or outsource non-essential roles.
  • Decrease variable costs: Buy materials in bulk, optimize packaging, or renegotiate shipping rates.
  • Increase your price: Even a small increase in selling price dramatically increases the contribution margin and lowers the break-even volume, provided it doesn't hurt demand.

Frequently Asked Questions

What is the break-even point?
The break-even point (BEP) is the exact moment when your total revenue equals your total costs (fixed and variable). At this point, your business is neither making a profit nor a loss.
How do I calculate fixed costs?
Fixed costs are expenses that do not change based on how much you produce or sell. Common examples include rent, salaries, insurance, and software subscriptions.
What are variable costs?
Variable costs increase directly with production. These include raw materials, packaging, direct labor, and shipping fees for each unit sold.
What is a contribution margin?
The contribution margin is the selling price per unit minus the variable cost per unit. It represents the portion of sales revenue that "contributes" to paying off fixed costs.
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