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Tools / Break-even point & safety margin calculator

Break-even point & safety margin calculator

Business break-even analysis calculator. Determines the exact unit sales volume and revenue required to cover fixed and variable costs, with margin of safety and profit projections.

Runs entirely in your browser

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About this tool

The break-even point is where a business’s revenue exactly covers its costs — below it you lose money, above it you profit. This calculator finds that point in both units sold and revenue, from your fixed costs, variable cost per unit and selling price, and adds the margin of safety and profit projections beyond break-even.

The key concept it uses is contribution margin — the selling price minus the variable cost per unit, which is what each sale contributes toward covering fixed costs. Dividing fixed costs by that margin gives the number of units you must sell to break even, a figure that is essential for pricing, planning and judging whether a product is viable.

It runs in your browser, so your business figures stay private. Use it to test a price, set a sales target, or assess how much sales could fall before you start losing money (the margin of safety).

Frequently asked questions

What is the break-even point?
The level of sales at which total revenue equals total cost, so there is neither profit nor loss. Below it you lose money; above it you profit.
What is contribution margin?
The selling price minus the variable cost per unit — the amount each sale contributes toward covering fixed costs. Break-even units equal fixed costs divided by this margin.
What is the margin of safety?
How far sales can fall from their current or expected level before reaching break-even. A larger margin of safety means less risk.
Are my figures private?
Yes. The calculation runs in your browser, so nothing you enter is uploaded.

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