Loan Lyze

Cost-volume-profit analysis

Break-Even Calculator

Find the sales volume and revenue needed to cover fixed costs or reach a target profit.

Cost-volume-profit

Find your break-even point

Break-even result

Break-even units

2,000

$100,000 in sales.

Units for target profit

3,000

To produce $30,000 profit.

Contribution per unit$30
Contribution margin60.0%
Expected revenue$150,000
Expected profit$30,000
Margin of safety33.3%
This single-product model assumes constant price, unit cost, fixed costs, and sales mix. Capacity steps, discounts, taxes, and demand changes can shift the actual break-even point.

How break-even is calculated

Selling price minus variable cost gives contribution per unit. Fixed costs divided by contribution gives break-even units. Adding target profit to fixed costs before dividing gives the target-profit volume.

Important limitations

  • Assumes constant price, variable cost, fixed costs, and product mix.
  • Expected profit is before income tax and financing unless those costs are included.
  • Round required units up because partial units generally cannot be sold.