Break-Even Calculator
Calculate how many units you need to sell to cover your costs, estimate break-even revenue and understand your contribution margin and expected profit or loss.
Calculate Your Break-Even Point
Enter your fixed costs, selling price and variable cost per unit. You can also add an expected sales volume to estimate profit or loss.
Break-Even Summary
See the sales volume and revenue required to cover your fixed and variable costs.
Enter your values and calculate.
Break-Even Units = Fixed Costs ÷ (Selling Price − Variable Cost per Unit)
QAR 10,000 fixed costs with QAR 40 contribution per unit
If a product sells for QAR 100 and has a variable cost of QAR 60, each unit contributes QAR 40 toward covering fixed costs and then generating profit.
Fixed Costs: QAR 10,000 • Selling Price: QAR 100 • Variable Cost: QAR 60 • Break-Even: 250 units
Understand what drives your break-even point
Break-even analysis connects fixed costs, unit economics and sales volume.
Fixed Costs
Expenses that generally do not change directly with the number of units sold.
Examples: rent, salaries, insuranceVariable Costs
Costs that increase as more products or services are sold.
Examples: materials, packaging, commissionsContribution Margin
The amount remaining from each sale after the variable cost of that unit is deducted.
Selling Price − Variable CostWhat your break-even point tells you
The break-even point is more than a minimum sales target. It can help you understand how pricing, costs and sales volume affect the financial performance of a product or business.
Sales Below Break-Even
When sales are below the calculated break-even volume, total contribution is not yet enough to cover fixed costs. Under the entered assumptions, the business or product is operating at a loss.
Sales at Break-Even
At the break-even point, contribution from sales covers the fixed costs included in the calculation. The estimated operating result under those assumptions is approximately zero.
Sales Above Break-Even
Once sales move above break-even, additional contribution can generate profit, provided the selling price, variable costs and fixed-cost assumptions remain unchanged.
Changes Move the Break-Even Point
Higher fixed or variable costs generally increase the number of units required to break even. A higher selling price can reduce the break-even volume when variable cost per unit remains unchanged.
Planning tip: Try several realistic scenarios rather than relying on a single result. Comparing different selling prices, cost levels and expected sales volumes can show how sensitive your break-even point is to changes in the business.
Calculate break-even in four simple steps
Enter your total fixed costs.
Enter selling price and variable cost.
Find contribution and break-even volume.
Optionally compare expected sales against break-even.
Common mistakes in break-even analysis
Break-even calculations are useful for planning, but the result depends on the accuracy of the cost, price and sales assumptions used in the calculation.
Leaving Out Fixed Costs
Rent, salaries, insurance, software subscriptions and other relevant fixed expenses should be considered when they form part of the operation being analysed.
Underestimating Variable Costs
Materials may be only one part of the variable cost. Packaging, commissions, transaction fees and other costs that increase with sales can affect contribution per unit.
Using an Unrealistic Selling Price
The calculation assumes the entered selling price applies to the units sold. Discounts, promotions or different customer prices can change the actual contribution earned.
Treating Break-Even as a Sales Forecast
Break-even tells you the sales level required to cover the costs entered into the calculation. It does not predict whether customer demand will actually reach that level.
Useful for everyday business planning
Small Businesses
Estimate the sales volume needed before the business starts generating profit.
E-commerce Sellers
Compare product pricing and unit costs against fixed operating expenses.
Retail Businesses
Estimate how many units need to be sold to recover operating costs.
Business Planning
Test simple cost, price and sales-volume scenarios before making decisions.
Break-Even Calculator — Frequently Asked Questions
What is the break-even point?
The break-even point is the sales level where total contribution equals fixed costs, resulting in neither profit nor loss.
How do I calculate break-even units?
Divide total fixed costs by the contribution per unit. Contribution per unit is selling price minus variable cost per unit.
What is break-even revenue?
Break-even revenue is the sales value associated with the break-even sales volume.
What happens if variable cost is higher than selling price?
There is no positive contribution toward fixed costs. Under those assumptions, increasing unit sales will not produce a normal break-even point.
What is contribution margin percentage?
Contribution margin percentage is contribution per unit divided by selling price, multiplied by 100.