Written and reviewed by FormulaCraft Team. Each formula on this page is run through our verification engine before publishing.
Last reviewed:
How to calculate the break-even point in Excel and Google Sheets
Topic:Finance basicsExcel & Google Sheets
=A2/(B2-C2)✓
Verified example
Computed by a real spreadsheet engine on the sample data below.
| Fixed Costs | Price/Unit | Variable Cost/Unit | Break-Even Units |
| 10000 | 50 | 30 | |
| 5000 | 25 | 10 | |
| 20000 | 100 | 60 | |
| 8000 | 40 | 20 |
=A2/(B2-C2)→500
Try it with your data
Edit the grid or formula, then run it through a real spreadsheet engine — no signup.
Sample data — click any cell to edit
Runs server-side · free · no signup
Step by step
- 1Set up three columns: Fixed Costs (A), Selling Price per Unit (B), and Variable Cost per Unit (C).
- 2In the Break-Even Units column, enter =A2/(B2-C2). The denominator (B2-C2) is the contribution margin per unit.
- 3Optionally, calculate Break-Even Revenue by multiplying the result by the selling price: =(A2/(B2-C2))*B2.
Tips
- Use CEILING(A2/(B2-C2),1) to round up to the nearest whole unit, since you cannot sell a fraction of a physical product.
Working on a sheet you inherited? Run the Auditor on the whole file first — it flags every #REF!, #N/A, broken column pattern, and inconsistent formula in seconds, free, no signup.
Frequently asked
What if my variable costs change at different production volumes?
This basic formula assumes constant variable cost. For stepped costs, use a data table or scenario analysis with different variable cost values.
How do I calculate break-even in dollars (revenue) instead of units?
Use: =A2/(1-(C2/B2)), where the term in parentheses is the contribution margin ratio.
More on Finance basics
See all →How-to
How to calculate tiered commission
Apply different commission rates by sales tier using IFS. Works in Excel 2019/365 and Google Sheets.
How-toHow to calculate gross margin
Compute gross margin percentage as (price − cost) / price. Identical in Excel and Google Sheets.
How-toHow to calculate compound interest
Compute a compounded future value with principal × (1 + rate)^years using POWER. Identical in Excel and Google Sheets.
How-toHow to calculate cost per unit
Divide total cost by total units to find cost per unit using a simple formula in Excel or Google Sheets.
How-toHow to calculate a selling price from a target margin
Use cost and target gross margin percentage to back-calculate the required selling price in Excel or Google Sheets.
How-toHow to calculate simple interest
Multiply principal, rate, and time to compute simple interest using a straightforward formula in Excel or Sheets.