Break-Even Calculator

What the break-even point tells you

Your break-even point is the number of units you must sell for total revenue to exactly cover total costs — no profit, no loss. The math is simple: break-even units = fixed costs ÷ (price per unit − variable cost per unit). Every sale above that line is profit; every sale below it means your fixed costs are not yet covered. Knowing this one number turns vague pricing guesses into a concrete sales target.

Contribution margin does the heavy lifting

The difference between your price and your variable cost per unit is the contribution margin — the slice of each sale left over to pay down rent, software, salaries, and other fixed costs. If your price is $25 and each unit costs $10 to produce and ship, every sale contributes $15. Raise the price or trim the per-unit cost, and the break-even target drops fast, because you are dividing the same fixed costs by a bigger number.

Estimates only — this calculator is for planning and education, not financial, tax, insurance, or legal advice.

How to use it

1. Enter your total fixed costs for the period — rent, subscriptions, salaries, insurance — anything you pay even at zero sales.
2. Enter the price per unit you charge customers.
3. Enter the variable cost per unit: materials, production, packaging, payment fees, and shipping per item.
4. Optionally set a target profit, and read off the break-even units, break-even revenue, and the units needed to hit that profit — results update as you type.

FAQ

What counts as a fixed cost?

Anything you pay regardless of sales volume: rent, insurance, software subscriptions, base salaries, loan payments, and marketplace or listing fees that recur monthly. Use the same period (usually one month) for fixed costs and your target profit.

What counts as a variable cost?

Costs that scale with each unit sold: raw materials, manufacturing, packaging, per-order shipping, transaction fees, and per-sale commissions. If it disappears when you sell nothing, it is variable.

Why are the unit counts rounded up?

You cannot sell 133.3 units, so the calculator rounds up to the next whole unit. The exact figure is shown underneath, and revenue is based on the rounded-up count.

What if my price is lower than my variable cost?

Then there is no break-even point — you lose money on every unit, and selling more only deepens the loss. Raise the price or cut the per-unit cost until the contribution margin is positive.