EconixaECONOMICS FUNDAMENTALS

Interactive calculator

Break-Even Calculator

Break-even quantity = fixed costs / (price - average variable cost). Enter fixed costs, price per unit, and variable cost per unit to find how many units must be sold before the firm earns its first dollar of profit — and see the margin of safety at any output level. In this release this page is powered by the closest available interactive widget; a dedicated widget for this topic is planned.

030609012015001020304050Quantity QPrice PDSE (Q*=64, P*=18.0)
Qd = 100 − 2PQs = 10 + 3PEquilibrium price P* = 18.00Equilibrium quantity Q* = 64.00
Reading the market

Equilibrium solves Qd = Qs, so P* = (a − c) ÷ (b + d). Shifting demand changes a; shifting supply changes c. A ceiling only bites when set below P* (creating a shortage); a floor only bites when set above P* (creating a surplus).

How to use it

  1. Enter fixed costs, price, and variable cost per unit.

  2. Read the break-even quantity.

  3. Enter a planned output to see profit and margin of safety.

What you will learn

  • Compute break-even quantity.
  • Explain the role of contribution margin.
  • Use break-even in pricing decisions.