Break-Even Units
3,334
Break-Even Revenue
$83,350
Contribution Margin
$15
What is break-even analysis?
Break-even analysis determines the point at which your total revenue equals total costs -- meaning you neither make a profit nor incur a loss. It helps businesses understand how many units they need to sell (or how much revenue they need to generate) to cover all fixed and variable costs. It is a fundamental tool for pricing decisions and financial planning.
What are fixed vs variable costs?
Fixed costs remain constant regardless of production volume -- examples include rent, insurance, salaries, and loan payments. Variable costs change in proportion to production -- examples include raw materials, packaging, shipping, and sales commissions. Understanding this distinction is essential for accurate break-even analysis.
How do I use break-even for pricing?
Break-even analysis helps set minimum prices by showing how many units you need to sell at a given price to cover costs. If the break-even quantity seems too high, you may need to raise prices, reduce costs, or both. You can test different price points to find the optimal balance between volume and profitability for your business.
Disclaimer: This calculator provides estimates based on current IRS rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your filing status, state of residence, deductions, and individual circumstances. Always consult a qualified tax professional or CPA before making financial decisions. Read our terms
This calculator uses official rates and thresholds from:
Last verified: March 2026 · Tax year 2025. Results are indicative — consult a qualified accountant for personalised advice.