Break-Even Calculator

Find how many units you need to sell to cover your costs.

Rent, salaries, software, insurance…
Materials, shipping, payment fees…
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About this break-even calculator

The break-even point is where total revenue equals total costs, so you are making neither a profit nor a loss. Every unit you sell contributes its price minus its variable cost toward paying your fixed costs; once those are covered, each additional sale is profit.

Knowing this number helps you set prices, judge whether a new product or location is realistic, and plan how much marketing it takes to become profitable.

How to use the Break-Even Calculator

  1. Enter your fixed costs for the period (usually a month).
  2. Enter the price you charge per unit.
  3. Enter the variable cost of each unit.
  4. Read the units and revenue needed to break even.

The break-even formula

Break-even units = Fixed costs ÷ (Price − Variable cost per unit)

Price minus variable cost is the contribution margin. Break-even revenue is the break-even units multiplied by the price. Units are rounded up because you can't sell a fraction of a product.

Worked example

With $5,000 of monthly fixed costs, a $45 price and $20 variable cost, each sale contributes $25. You need 5,000 ÷ 25 = 200 units a month, or $9,000 in revenue, to break even.

Tips for better results

  • Raising the price or cutting variable costs lowers the break-even point faster than you might expect.
  • For service businesses, treat one billable hour or one job as a "unit".

Frequently asked questions

What counts as a fixed cost?

Costs that don't change with sales volume in the short term — rent, salaries, insurance, loan payments and software subscriptions.

What is a contribution margin?

The amount each sale contributes to covering fixed costs: price minus variable cost per unit.

Last reviewed: October 2026 · Results are calculated in your browser.

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