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Break-even calculator

Break-even point (units) = fixed costs ÷ (price − variable cost per unit). With 12,000 of fixed costs, a price of 50 and a variable cost of 20, each sale contributes 30, so you break even at 12,000 ÷ 30 = 400 units, or 20,000 of revenue.

Advanced adds the details: more fields, your own assumptions and a fuller breakdown.

Units to break even

400

Contribution per unit
$30.00
Contribution margin
60.00%
Units to break even
400
Revenue to break even
$20,000.00
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The numbers stay in this browser.

The formulas

  • Contribution per unit = price − variable cost
  • Break-even units = fixed costs ÷ contribution per unit (rounded up)
  • Break-even revenue = fixed costs ÷ contribution margin

For freelancers and service businesses

Use a project or a billable day as the unit. Fixed costs are what you pay whatever you sell (software, insurance, rent); variable costs are what each project adds (subcontractors, materials, payment fees).

QuickBilling's profit and loss report shows your fixed and variable costs from real expenses. See reports.

Questions

How do I calculate the break-even point?

Divide fixed costs by the contribution per unit (price minus variable cost). Round up to whole units.

What is the contribution margin?

The share of each sale left after variable costs: (price − variable cost) ÷ price. At 50 and 20 it is 60%.

How do I find break-even revenue?

Divide fixed costs by the contribution margin: 12,000 ÷ 0.6 = 20,000.

Does the calculator save my numbers?

No. It runs in your browser and sends nothing to QuickBilling or anyone else.

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