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Break-Even Revenue Calculator

Calculate the sales revenue required to cover fixed costs at a given contribution margin ratio.

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Contribution Margin Ratio —
Break Even Revenue —
Fixed Costs —

Calculator guide

Plan revenue targets with contribution margin

Use revenue and variable costs from the same period to calculate the contribution margin ratio. Variable costs should rise with sales volume; fixed costs should remain largely unchanged within the relevant range.

The calculator divides fixed costs by the contribution margin ratio. If revenue is zero or variable costs equal or exceed revenue, a meaningful break-even revenue cannot be calculated.

Use net sales consistently and decide whether discounts, returns, commissions, shipping and payment fees are treated as variable costs.

Compare break-even revenue with realistic capacity, demand and cash timing. Reaching accounting break-even does not guarantee adequate cash flow.

Formula

Plan revenue targets with contribution margin

Contribution margin ratio = (Revenue − Variable costs) ÷ Revenue; Break-even revenue = Fixed costs ÷ Contribution margin ratio

  1. Subtract variable costs from revenue.
  2. Divide the result by revenue to obtain the contribution margin ratio.
  3. Divide fixed costs by that ratio.
  4. Compare the target with expected sales capacity.

Worked example

Worked example

Inputs

Scenario
$10,000 revenue and $6,000 variable costs produce a 40% contribution margin ratio. With $5,000 fixed costs, break-even revenue is $12,500.

Results

Result
$10,000 revenue and $6,000 variable costs produce a 40% contribution margin ratio. With $5,000 fixed costs, break-even revenue is $12,500.

Rounded planning example; replace assumptions in the live calculator.

Frequently asked questions

Break-Even Revenue Calculator FAQ

What should I verify before using this calculator?

Verify the reporting period, included cost categories, units, currency and source records. Save those assumptions with the result.

How accurate is the result?

The arithmetic follows the displayed formula. Accuracy depends on complete inputs, consistent definitions and values from the same reporting period.

Can I use another currency?

Yes. Keep every monetary input in the same currency. The calculator does not convert exchange rates.

Should I use forecast or actual data?

Use actual data for performance review and documented assumptions for planning. Label forecasts clearly and compare them with actual results later.

Why should I compare several periods?

One period can be distorted by seasonality, promotions, delayed payments or unusual purchases. A consistent trend is more informative.

Is this accounting, tax or professional advice?

No. It is an independent planning tool. Reconcile results with your accounting records and qualified advisers where required.

Are my inputs uploaded?

No. Calculator inputs are processed locally in the browser and do not need to be sent to a server.

Primary sources

Official references and further reading

Editorially reviewed: 2026-07-21

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