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Break-Even Calculator

Calculate units or revenue needed to cover all costs and break even. Enter fixed costs, variable costs per unit and selling price to find your break-even point.

Last reviewed 15 August 2026

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When to use this calculator

  • Before pricing a job, setting margin targets or reviewing hiring costs.
  • When you want to test sensitivity around volume, tax, markup or overheads.
  • When you need a practical estimate before committing to a budget or proposal.
  • When you are modelling break-even volume as costs or prices change.

A realistic Australia planning example

Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.

A realistic Australia planning example
InputValue
Fixed Costs (A$)A$500
Selling Price per Unit (A$)A$0.30
Variable Cost per Unit (A$)A$500

After entering these figures, review break-even units, revenue needed and contribution margin together rather than in isolation. Then rerun the tool with one input adjusted.

How to read your results

Break-Even Units

The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.

Revenue Needed

The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.

Contribution Margin

The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.

Common mistakes

  • !Using an assumption that is not supported by a current local quote, bill, statement or official source.
  • !Treating a generic estimate as a lender, provider, payroll or tax authority decision.
  • !Mixing monthly and annual inputs without converting them consistently.
  • !Testing only one scenario instead of checking how a cautious assumption changes the result.

What to do next

  • Run a second scenario with a cautious assumption so you can see the downside clearly.
  • Compare the result with the related calculators below before making a decision.
  • Check current local rules, eligibility and provider terms before applying or committing money.
  • Keep a record of the assumptions so you can update the estimate when a quote, bill or pay figure changes.

Frequently asked

Contribution margin = selling price minus variable cost. It is the amount each sale contributes towards fixed costs and profit after break-even. Expressed as a ratio it becomes a powerful lever: doubling contribution margin halves the break-even volume, making pricing a more effective profit lever than cost cutting in many businesses.

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