Break-Even Calculator
The break-even point is the sales volume at which total revenue equals total costs — the moment a product or business stops losing money and starts turning a profit. Enter your fixed costs, price per unit, and variable cost per unit to find how many units you need to sell and the revenue that represents.
- Free — no sign-up
- Private — runs in your browser
- Instant results
How to use the Break-Even Calculator
- 1Enter fixed costs. Costs that don't change with volume — rent, salaries, software, insurance.
- 2Enter price per unit. What you charge for one unit of the product or service.
- 3Enter variable cost per unit. The per-unit cost that scales with production — materials, shipping, fees.
Examples
A subscription product
Fixed costs: $6,000/mo
Price per unit: $30
Variable cost: $10Contribution margin: $20/unit
Break-even: 300 units
Break-even revenue: $9,000Each sale contributes $20 toward the $6,000 of fixed costs, so you need 300 subscribers to break even. Sale #301 is your first profit.
Why a low margin hurts
Fixed costs: $6,000/mo
Price per unit: $30
Variable cost: $25Contribution margin: $5/unit
Break-even: 1,200 unitsKeep everything the same but raise the variable cost to $25, and the break-even jumps from 300 to 1,200 units. Small changes in per-unit cost move the break-even point dramatically.
Frequently asked questions
What is the break-even formula?
Break-even units = Fixed Costs ÷ (Price per Unit − Variable Cost per Unit). The denominator is your contribution margin per unit.
What is contribution margin?
It's the price per unit minus the variable cost per unit — the amount each sale contributes toward covering fixed costs. If it's zero or negative, you can't break even at that price.
How can I lower my break-even point?
Three levers: raise the price, cut the variable cost per unit, or reduce fixed costs. Each one increases the profit per sale or shrinks the total you must cover, so you break even on fewer units.