Break-even is where profit equals zero. You can solve it with a formula — or let Goal Seek drive profit to zero by changing the units, which also works when the profit model is too complex to rearrange.
The example
Fixed $10,000, price $25, variable $15 → break-even 1,000 units.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | Profit target | $0 |
| 3 | Break-even units | 1,000 |
The formula
Goal Seek, or the direct formula:
How it works
Two routes to the same break-even:
- Build a profit model:
units × (price − variable) − fixed. - Run Goal Seek: set the profit cell to 0 by changing the units cell.
- Excel returns the break-even volume. For a clean whole number, the direct formula is
=ROUNDUP(fixed/(price−variable), 0). - Use Goal Seek when extra terms (taxes, tiered costs) make the model hard to rearrange by hand.
Break-even in dollars: multiply break-even units by price, or divide fixed costs by the contribution-margin ratio: =fixed / ((price−variable)/price). Same point, expressed as revenue.
Try it: interactive demo
Set fixed, price, variable.
Variations
Direct formula
No Goal Seek:
Break-even revenue
In dollars:
With target profit
Units for a goal:
Pitfalls & errors
Price must exceed variable cost. If the contribution margin is zero or negative, there’s no break-even — Goal Seek won’t converge.
Goal Seek overwrites units. It changes the cell’s value; note the original or use the formula for a non-destructive answer.
Round up. You can’t sell a fraction of a unit — ROUNDUP to the next whole unit to truly cover costs.
Practice workbook
Frequently asked questions
How do I find break-even with Goal Seek in Excel?
What's the direct break-even formula?
How do I get break-even in dollars?
Stop fighting formulas. Learn them in a day.
This recipe is one of hundreds of real-world formulas we teach. Our Excel Formulas & Functions class covers lookups, logic, text, and dynamic arrays hands-on — live in Dallas–Fort Worth, Houston, Austin, Oklahoma City, Denver, or online.
See the Formulas & Functions Class