Break-even Calculator

It works out how many units you need to sell, and how much revenue that is, before a product or business starts making a profit — the point where total revenue equals total costs.

The break-even point is the sales volume at which profit is zero: contribution from each unit has exactly covered your fixed costs. Below it you make a loss; above it you make a profit.

Divide fixed costs by the contribution margin per unit (price minus variable cost). For example, $1,000 of fixed costs with a $10 contribution margin breaks even at 100 units.

Contribution margin is the selling price minus the variable cost of one unit. It is the amount each sale contributes toward covering fixed costs and, after break-even, toward profit.

Fixed costs stay the same regardless of how much you sell (rent, salaries, software). Variable costs rise with each unit sold (materials, per-unit shipping, transaction fees).

Then each sale loses money and there is no break-even point at any volume — the contribution margin is zero or negative. You would need to raise the price or cut the variable cost first.

Add the target profit to your fixed costs, then divide by the contribution margin per unit. Enter a target profit above to see the units and revenue required.