Break-Even Calculator Australia
Calculate how many units you need to sell to cover your business costs and reach your break-even point.
What Is the Break-Even Point?
The break-even point is the level of sales where your total revenue equals your total costs. At this point, the business has neither a profit nor a loss.
Example
Suppose your Australian business has:
- Fixed costs: $5,000
- Variable cost per unit: $20
- Selling price per unit: $50
Your contribution per unit is $30, so you need to sell approximately 167 units to reach your break-even point.
What Are Fixed Costs?
Fixed costs are business expenses that generally do not change directly with the number of units sold. Examples can include rent, software subscriptions, insurance and certain administrative costs.
What Are Variable Costs?
Variable costs generally change with the quantity of products or services sold. Examples can include materials, packaging, production costs and transaction-related costs.
This calculator is a general business planning tool. Actual costs and break-even results can vary depending on your business structure, products, GST treatment, taxes and other expenses.
Break-Even Calculator Australia – FAQ
What is a break-even calculator?
A break-even calculator estimates how many units a business needs to sell before its revenue covers its fixed and variable costs.
How do you calculate break-even units?
Divide your fixed costs by the difference between your selling price per unit and variable cost per unit.
What happens if my selling price is lower than my variable cost?
A break-even point cannot be calculated because each additional sale would generate a negative contribution toward fixed costs.
Does this calculator include GST?
No. Enter figures on a consistent basis. If GST applies to your business, consider whether your figures should be entered excluding or including GST before using the calculation.