Break-Even Calculator Australia

Break-even units = total fixed costs / (selling price per unit − variable cost per unit). The denominator is your contribution margin per unit, the amount each sale contributes towards covering fixed costs. Multiply the break-even units by the selling price to get your break-even revenue (sales dollars). For example, with $50,000 of fixed costs, a $100 selling price and $40 of variable cost per unit, you break even at $50,000 / ($100 − $40) = 834 units, or about $83,400 in sales.

The break-even point is the level of sales at which your total revenue exactly equals your total costs (fixed plus variable), so your profit is zero. Below it you make a loss; above it you make a profit. It can be expressed in units (how many you need to sell) or in revenue (the sales dollars you need to bring in).

Contribution margin is your selling price per unit minus your variable cost per unit, the slice of each sale left over to cover fixed costs and then generate profit. If your price is $100 and variable cost is $40, your contribution margin is $60 per unit, or 60% as a ratio. Break-even revenue equals fixed costs divided by the contribution margin ratio.

Fixed costs stay roughly the same regardless of how much you sell, rent, insurance, software subscriptions, loan repayments, and salaried wages. Variable costs change with each unit sold, materials, stock you buy in, packaging, freight, payment processing fees, and direct labour or contractor costs tied to the job. Classify your costs first, because the split drives the whole calculation.

Use GST-exclusive figures throughout for a true break-even, because the GST you collect on sales is not your money, you remit it to the ATO. If you are registered for GST, enter your selling price and costs net of GST so the result reflects the cash you actually keep. Keep all three inputs (fixed costs, price, variable cost) on the same GST basis.

Add your target profit to your fixed costs, then divide by the contribution margin per unit: units for target profit = (fixed costs + target profit) / (selling price − variable cost). Switch on the target-profit toggle above and the calculator does this for you, showing both the units and the revenue needed to hit your profit goal.