Find how many units to sell, what revenue you need,
or what price to charge to cover all your costs.
Break-even units is the number of items you must sell to cover all fixed and variable costs.
Contribution margin is the amount each unit contributes toward covering fixed costs.
The break-even point is the most fundamental number in business finance. It answers: how many units do I need to sell before I start making money?
Knowing this number changes how you make decisions. Should you hire another employee? That raises your fixed costs, which raises your break-even point. Use PaycheckTools to estimate the full cost of that new hire's salary and payroll taxes.
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