Break-even formula in Excel or Google Sheets
Put the inputs in column B from row 2, then paste the formulas below. They work the same in Excel and Google Sheets.
| Cell | What | Value or formula | Example |
|---|---|---|---|
| B2 | Fixed costs per month ($) | 50000 | 50000 |
| B3 | Price per unit ($) | 100 | 100 |
| B4 | Variable cost per unit ($) | 60 | 60 |
| B6 | Break-even units | =IF(B3>B4,ROUNDUP(B2/(B3-B4),0),"Never: price is at or below variable cost") | 1250 |
| B7 | Break-even revenue ($) | =IF(B3>B4,B6*B3,"Never") | 125000 |
| B8 | Contribution margin per unit ($) | =B3-B4 | 40 |
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Frequently asked questions
- How do you calculate the break-even point?
- Divide fixed costs by the contribution margin per unit (price minus variable cost). $50,000 ÷ ($100 − $60) = 1,250 units, or $125,000 of revenue.
- What are fixed and variable costs?
- Fixed costs stay the same whatever you sell: rent, salaries, software. Variable costs grow with each unit: materials, shipping, payment fees, commissions.
- How can I lower the break-even point?
- Raise the price, lower the variable cost per unit or cut fixed costs. A small price increase often moves break-even more than cost cutting.
About the author
Abdessamad Ghanem
Customer Experience & Customer Success Consultant · Founder of Clarivoxx
Abdessamad Ghanem works across Customer Support, Sales, Customer Success, Account Management and Partner Management. He writes Clarivoxx Insights for B2B SaaS professionals who own retention, adoption and customer outcomes.