Break-Even Calculator
Enter your monthly fixed costs, your price and the variable cost of each unit. You'll see how many units you must sell to break even — and how many to hit a profit goal.
Break-even formula
Contribution margin per unit = price − variable cost
Break-even units = fixed costs ÷ contribution margin per unit
Break-even sales ($) = fixed costs ÷ (contribution margin ÷ price)
Units for a profit goal = (fixed costs + profit goal) ÷ contribution margin
Example
A business with $5,000 of monthly fixed costs sells a product for $50 that costs $20 to make and ship. Each sale contributes $30 toward fixed costs. Break-even is 5,000 ÷ 30 = 166.7, so you need 167 sales a month ($8,350 in revenue). To also earn $2,000 profit you need 234 sales.
How to lower your break-even point
- Raise prices — even a small increase can cut break-even units a lot.
- Reduce variable costs — better supplier prices, cheaper shipping.
- Cut fixed costs — unused subscriptions and space.
- Sell higher-margin products alongside your main offer.
Frequently asked questions
What is a break-even point?
The level of sales where total revenue equals total costs, so you make neither a profit nor a loss.
What's the difference between fixed and variable costs?
Fixed costs (rent, salaries, insurance) stay the same each month regardless of sales. Variable costs (materials, shipping, payment fees) rise with every unit sold.
How do I calculate break-even for a service business?
Use your hourly or per-project price as the 'price per unit' and the direct cost of delivering it (subcontractors, materials) as the variable cost.