# 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 Chart

## 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