Break Even Analysis Calculator
Every business needs to know the point where sales begin to outpace costs. This breakeven analysis calculator helps you estimate how many units you'd need to sell, at your price and cost structure, to cover your expenses, plus the profit you could make beyond that point. It's a useful starting tool for owners and entrepreneurs setting prices, planning production or weighing a new product, so you can move forward with a clearer picture of what it takes to turn a profit.
Frequently asked questions
A breakeven analysis determines the point at which your total sales revenue equals your total costs — the moment a product or business stops operating at a loss and begins to turn a profit. It helps you understand how many units you need to sell, at a given price, to cover both fixed and variable costs.
In its simplest form, the breakeven point in units equals your fixed costs divided by the difference between the price per unit and the variable cost per unit (the contribution margin). This calculator captures those variables for you so you can estimate the sales volume required to break even and the profit you could make beyond it.
Understanding your breakeven point helps you set pricing, plan production, evaluate new products and make borrowing decisions with more confidence. To talk through financing options for your business, explore UMB business lending or connect with a UMB business banker.