Break-Even Calculator
Find how many units you must sell to cover all your costs — the point where profit begins.
How to use the Break-Even Calculator
- Enter your total fixed costs (rent, salaries, equipment).
- Enter the price you sell each unit for.
- Enter the variable cost to make or buy each unit.
- See the units and revenue you need to break even.
Break-even units = Fixed costs ÷ (Price − Variable cost per unit)
About the Break-Even Calculator
The break-even point is where total revenue exactly equals total cost — you make neither a profit nor a loss. Below it you lose money; above it, every extra sale is profit. Knowing this number is one of the most important checks before launching a product or business.
The gap between your selling price and the variable cost of each unit is the contribution margin — the money each sale contributes toward fixed costs. Divide fixed costs by that margin and you get the units you must sell to break even.
Use it to test pricing, decide whether a product is viable, or see how much a rent increase or a price cut changes the sales you need.
Frequently asked questions
What are fixed vs variable costs?
Fixed costs stay the same no matter how much you sell (rent, salaries, insurance). Variable costs rise with each unit (materials, packaging, shipping).
What is contribution margin?
It is the selling price minus the variable cost per unit — the amount each sale contributes toward covering fixed costs and then profit.
What if price is below variable cost?
Then you lose money on every sale and can never break even. You must raise the price or cut the variable cost first.