# Break-Even Calculator

This **Break-Even Calculator** allows you to know exactly how many units you need to sell to cover all of your business costs such as costs of goods, rent, wages, and so on. Break-even means when your business reaches a point where the profits are equal to the costs.

**Costs Per Unit** = How much money a business spends on producing one unit of the product they sell

**Revenue Per Unit** = Retail price of one unit of the product that a business is selling for

**Fixed Costs** = Business costs such as lease/rent, utilities, wages, insurance, and so on

## How to calculate break-even point?

**Formula to find how many units to sell to break-even:**

Number of Units = Fixed Costs / (Revenue Per Unit - Costs Per Unit)

**Formula to find revenue to earn to break-even:**

Total Revenue = (Revenue Per Unit * Fixed Costs) / (Revenue Per Unit - Costs Per Unit)