Break-Even Calculator

Enter your fixed costs, selling price, and cost per unit to find out exactly how many sales you need to start making a profit.

Fixed costs

Price per unit

Variable cost per unit

Currency

Units to break even

—

Revenue at break-even

—

Ad slot (in-content) — replace with AdSense unit

How break-even is calculated

Break-even is the point where total revenue equals total costs — you’ve covered everything but haven’t yet made a profit. The key figure is the contribution margin: what’s left from each sale after paying its direct (variable) costs. That leftover chips away at fixed costs.

Worked example. You have $1,000 in fixed costs (tools, software, setup). Each unit sells for $25 and costs $5 in materials, leaving a $20 margin per sale. Break-even is 50 units, bringing in $1,250 of revenue. Every unit sold after that is pure profit.

Fixed vs variable costs

Fixed costs stay the same regardless of sales volume — rent, subscriptions, equipment you’ve already bought. Variable costs scale with each unit — materials, shipping, per-unit fees. Keep them separate: only fixed costs factor into the break-even unit count.

When to revisit your numbers

If your margin is thin, even a small increase in variable costs (a supplier price rise, higher shipping) can push your break-even point up significantly. Re-run the calculator whenever your costs change.

Frequently asked questions

How do I calculate the break-even point?

Divide your total fixed costs by the contribution margin — the difference between your price per unit and variable cost per unit. With $1,000 in fixed costs and a $20 margin ($25 price minus $5 variable cost), you break even at 50 units ($1,000 ÷ $20).

What happens if my variable cost equals or exceeds my price?

You can never break even. Each sale either loses money or breaks exactly flat, so fixed costs never get recovered. You need to raise the price or cut the variable cost per unit to create a positive margin.