Break-Even & Target Profit Calculator

Use this break-even calculator to find how many units you must sell to break even and to hit a profit goal, from fixed costs, price and unit cost.

Fixed costs US$

Selling price per unit US$

Variable cost per unit US$

Target profit US$

Break-even units —

Units for target profit —

Revenue at target profit —

We always strive to use the latest data for every variable so our results and reports are as accurate as possible. Even so, errors are possible — you should not rely on this tool or its report alone, and we accept no liability for any decision made based on it.

What it does

The Break-Even & Target Profit Calculator shows how many units you must sell to cover all your costs, and how many more you need to reach a profit goal. It turns your fixed costs, price, and unit cost into clear sales targets.

Data sources & parameters

This calculator uses standard financial formulas and runs entirely in your browser. It needs no external rate data — your result is computed only from the values you enter above.

The formula

Break-even units = Fixed costs ÷ (Price − Variable cost); Units for target profit = (Fixed costs + Target profit) ÷ (Price − Variable cost)

How it works

It works out the contribution margin per unit (price minus variable cost), then divides fixed costs by that margin to find the break-even point. Adding your target profit to fixed costs gives the volume needed to hit that goal, and multiplying by price gives the revenue.

Where it is used

Setting a realistic sales target for a new product or business
Testing whether a price change makes a plan viable
Seeing how much extra volume a profit goal actually requires

Worked example

A business has $20,000.00 of fixed costs, sells each unit for $25.00 at a $15.00 variable cost, and wants $10,000.00 of profit. It must sell … units just to break even and … units to reach the goal, generating … in revenue.

What the break-even and target profit calculator does

Enter your total fixed costs for the period, the price of one unit, the variable cost of producing one unit and the profit you want to earn. The calculator shows how many units you must sell to break even, how many to reach your profit goal, and the revenue those sales represent. These figures are the starting point for pricing, budgets and business plans.

How break-even analysis works

Each sale first pays the variable cost of that unit, such as materials, packaging and shipping. What is left, the contribution margin, goes toward fixed costs such as rent, salaries, insurance and software, which you pay however much you sell. The business runs at a loss until total contribution margin equals total fixed costs; that is the break-even point. Beyond it, each further contribution margin is profit.

A wide margin per unit means each sale covers a lot, so you reach break-even quickly. A thin margin means you need high volume, which makes the business more exposed to a dip in sales.

The three inputs

Higher fixed costs raise the break-even point directly, so keeping them lean lowers risk. A higher price widens the margin on every unit and pulls the break-even point down, as long as customers still buy. A lower variable cost per unit widens the margin just as well, often with less customer resistance, and small savings in materials or fulfilment can move the break-even point a lot. Change one input at a time to compare scenarios.

Adding a target profit

The calculator treats your profit goal as an extra cost to cover: it adds it to fixed costs and divides by the contribution margin. The result is always at least the break-even volume, and the gap shows how much selling goes to covering costs and how much to profit. If a modest profit goal needs far more volume than you can realistically sell, the price or cost structure needs to change before the plan is viable.

Reading the results

The unit targets show what has to happen for the numbers to work, not whether the market will buy that much. Compare them with a realistic estimate of what you can sell. If break-even sits well below that, you have a margin of safety. If the profit target is close to or above it, a small shortfall would wipe out the profit, and widening the contribution margin is usually a better answer than hoping for more volume.

Common mistakes

Classifying a fixed cost as variable, or the reverse, distorts the margin and the break-even point. Annual fees, equipment and one-off setup costs still have to be covered, and leaving them out understates the break-even point. And a wide margin on paper means nothing if customers will not pay the price, so check it against competitors and what buyers accept. Use realistic assumptions and choose the plan with the widest margin of safety.

About This Break-Even Calculator

Use this break-even calculator to get an instant estimate based on the figures you enter. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.

Frequently asked questions

How does the break-even calculator work?

It subtracts your variable cost per unit from your selling price to find the contribution margin, then divides your fixed costs by that margin. The result is the number of units you must sell before you start making a profit. Adding a target profit to the fixed costs shows the volume needed to reach a specific goal.

What is the contribution margin?

The contribution margin is the money left from each sale after paying the variable cost of producing that unit. It is the selling price minus the variable cost per unit, and it is the amount every sale contributes toward covering fixed costs and, beyond break-even, toward profit.

What happens if the price is below the variable cost?

If the price does not exceed the variable cost, the contribution margin is zero or negative, so no volume can ever cover fixed costs. The calculator returns zero units, which is a signal to raise the price or cut the variable cost before the plan can work.

How is the target profit volume different from break-even?

Break-even only covers your costs and leaves zero profit. The target profit volume adds the profit you want on top of fixed costs before dividing by the contribution margin, so it is always at least as high as the break-even point, and higher when you set a profit goal.

Does this calculator work in any currency?

Yes. The math is the same everywhere, and the currency symbol is only for display. Enter every figure in the same currency and the unit targets and revenue will be correct for your market.

Is my data kept private?

Yes. The whole calculation runs in your browser. Nothing you type is uploaded, saved, or shared.

About the author

Written and reviewed by

Taha Kheirandish

Economics student and independent researcher

Taha Kheirandish reads tax codes the way other people read maps — to find out where a system actually leads, not where it claims to go.

He is an economics student, and his work here is comparative by design. A pension deferral bonus in Quebec, a commuting allowance in Germany, a rent-increase ceiling in the Netherlands: each is a decision a government made about how money should move, and each reads differently once you set it beside eight others. He builds and checks these calculators across nine markets from primary sources — the regulation rather than a summary of it, the ministry’s own circular rather than a news item quoting it.

That is the editorial standard of the site as well as his habit. Every rate, threshold and bracket here carries the document it was read from and the date it takes effect, and gets re-checked when the law moves rather than when someone happens to notice.

He is a researcher, not a licensed adviser, and nothing on this site is personal financial advice. It is arithmetic done carefully with its sources shown — so that you can check it, and take it to someone who is.

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