# Break Even Calculator

The break-even point is the number of units that you must sell in order to make a profit of zero. You can use this calculator to determine the number of units required to break even. Our online tool makes break-even analysis simple and easy.

Break Even Analysis Calculator

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## Break Even Point Formula and Example

The Break Even Calculator uses the following formulas:

Q = F / (P âˆ’ V) , or Break Even Point (Q) = Fixed Cost / (Unit Price âˆ’ Variable Unit Cost)

Where:

Q  is the break even quantity,

F  is the total fixed costs,

P  is the selling price per unit,

V  is the variable cost per unit.

Total Variable Cost = Expected Unit Sales Ã— Variable Unit Cost

Total Cost = Fixed Cost + Total Variable Cost

Total Revenue = Expected Unit Sales Ã— Selling Price Per Unit

Profit = Total Revenue âˆ’ Total Costs

Example: Suppose a company produces and sells a product with the following values:

• Fixed Costs = \$40,000
• Variable Cost Per Unit = \$5
• Selling Price Per Unit = \$10

In this example, the break-even point would be calculated as follows:

Q = \$40,000 / (\$10 âˆ’ \$5) = \$40,000 / \$5

Q = 8,000 units, the break-even point in unit sales is 8,000