Free online calculator
Break-Even Revenue Calculator
Estimate sales needed to cover fixed costs at a known contribution margin. Includes a worked example, formula and practical FAQs.
Formula: Break-even revenue = fixed costs ÷ contribution margin rate
How to use the Break-Even Revenue Calculator
Estimate sales needed to cover fixed costs at a known contribution margin. Use a margin after variable costs but before the fixed costs entered.
Formula
Break-even revenue = fixed costs ÷ (contribution margin / 100).
Worked example
$6,000 fixed costs and a 40% contribution margin require $15,000 revenue to break even.
Interpretation and limitations
Margin must be positive and no more than 100%. Fixed costs should match the period being forecast. The model assumes the margin remains stable as sales change.
Break-Even Revenue questions
Which margin should I enter?
Use contribution margin, not net margin after the same fixed costs. Otherwise the model can double-count overhead.
How is this different from break-even units?
Revenue gives the sales amount needed; units requires an additional assumption about selling price and variable cost per item.
Continue your calculation
For the next step, use the Contribution Margin Calculator or the Break-Even Units Calculator. Review each tool’s input definitions before carrying a result into another calculation.
Frequently asked questions
Is this calculator free?
Yes. It runs in your browser and does not require an account.
How should I use the result?
Use the result as a planning estimate and verify business-critical decisions against your source records.