Break-Even Calculator
Find out exactly how many units or sales you need before your business starts making profit.
Product or Service Pricing
The price you charge and the variable cost per unit sold
Monthly Fixed Costs
Costs that don't change regardless of how much you sell
What Is a Break-Even Analysis?
A break-even analysis calculates the exact point at which your total revenue equals your total costs — meaning you're neither making a profit nor a loss. Every unit or sale above this point generates profit; every unit below it represents a loss. Understanding your break-even point is one of the most fundamental aspects of running a financially healthy business.
The formula is: Break-Even Units = Fixed Costs ÷ (Selling Price − Variable Cost per Unit). The difference between your selling price and variable cost per unit is called the contribution margin — it's the amount each sale contributes toward covering your fixed costs and generating profit.
Fixed Costs vs Variable Costs
Fixed costs are expenses that remain constant regardless of how much you produce or sell: rent, salaries, insurance, software subscriptions, loan repayments. Variable costs change in proportion to output: raw materials, packaging, shipping, sales commissions, payment processing fees. Separating these two categories is essential for accurate break-even analysis.
How to Use Break-Even Analysis in Pricing
If your break-even point seems too high — requiring more sales than you can realistically achieve — you have three options: increase your selling price, reduce your variable costs per unit, or reduce your fixed costs. This calculator lets you test all three scenarios instantly to find the most viable path to profitability.
