Break-Even Calculator
Find the point where revenue covers costs — how many units must be sold to reach zero.
Tip: Break-even = fixed costs ÷ (price − variable cost per unit). E.g. 500,000 lek fixed, price 2,000 lek, cost 1,200 lek → 625 units.
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About this digital tool
The break-even calculator finds how many units you must sell for revenue to cover all costs, that is to reach zero. Enter fixed costs, the selling price per unit and the variable cost per unit, and the tool gives the number of units and the value of sales at the break-even point. Formula: break-even = fixed costs ÷ (price − variable cost per unit).
It is used by entrepreneurs starting a business, by shops setting prices and by people planning a new product. Fixed costs are those paid regardless of sales, such as rent; variable costs grow with every unit. The result is an estimate and assumes constant price and cost.
How to use
- Enter the total of fixed costs (rent, salaries, insurance).
- Enter the selling price per unit.
- Enter the variable cost per unit.
- Read the number of units and the revenue needed to reach zero.
Frequently asked questions
What is the break-even point?
The moment when the business neither loses nor gains — revenue = total costs. Sales above this point bring net profit.
How is the break-even point calculated?
Divide fixed costs by the difference between the price and the variable cost per unit. With 500,000 lek fixed costs, a price of 2,000 and a cost of 1,200, 625 units are needed.
What is the difference between fixed and variable costs?
Fixed costs don't change with volume, such as rent or base salaries. Variable costs grow with every unit produced or sold, such as raw materials.
How do I lower the break-even point?
By cutting fixed costs, cutting variable cost or raising the price. Each change affects how quickly the business starts to make a profit.