Break-Even Calculator
Find the break-even point for your business
The break-even point is where your sales exactly cover your costs — no profit, no loss. Enter your fixed costs, the price per unit, and the cost to make each unit to find how many you need to sell.
Break-Even Units
3,334
Break-Even Revenue
$83,333.33
Contribution Margin
$15.00
Per unit
Margin %
60.0%
How to Use This Calculator
- Enter your fixed costs (expenses that don't change with sales, like rent).
- Enter the price you charge per unit.
- Enter the variable cost to produce each unit.
- Review the break-even units and the revenue needed.
Why Use This Calculator?
- Deciding whether a product idea is viable.
- Setting sales targets to cover costs.
- Comparing pricing options before launching.
Real-World Examples
$10,000 fixed costs, $25 price, $10 variable cost
Each sale contributes $15 toward fixed costs, so you need about 667 sales to break even, or $16,675 in revenue.
Contribution margin
The contribution margin is price minus variable cost — what each unit contributes toward covering fixed costs. Divide fixed costs by the contribution margin to get the break-even number of units.
Frequently Asked Questions
What counts as a fixed cost?
Expenses that stay the same regardless of sales, like rent, insurance, and salaries. They don't rise when you sell more.
What if my variable cost is higher than my price?
Then each sale loses money and there's no break-even point — you'd need to raise the price or cut the per-unit cost first.
Does this include taxes?
No. This is a pre-tax operating break-even for planning, not a tax calculation.
Important Disclaimer
A simplified planning estimate that ignores taxes, financing costs, and changing costs at different sales levels. Not financial or business advice.
Privacy
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