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.

Break-even revenue—

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.