Calculator Tools

Break-Even Calculator

How many sales before you make a profit? Enter your fixed costs, the price of a unit and what each unit costs you, and the calculator shows the break-even point in units and in revenue, together with the contribution each sale makes. Add a target profit to see the sales needed to reach it.

  • Runs in your browser
  • No sign-up
  • Free to use

Costs that do not change with sales in the period: rent, salaries, subscriptions.

Costs for each unit: materials, packaging, payment fees, shipping.

How to use Break-Even Calculator

  1. Enter fixed costs for the period, such as a month.
  2. Enter the price per unit and the variable cost per unit.
  3. Optionally enter a target profit.
  4. Read the units and revenue needed to break even and to reach the target.

Break-Even Calculator features

Break-even units

Rounded up to whole units, with the exact figure alongside.

Break-even revenue

The sales value that covers fixed costs.

Contribution margin

Per unit and as a percentage of price.

Target profit

Units and sales needed for the profit you want.

Sanity checks

Explains when the price does not cover variable costs.

Shows the formula

Every figure comes with its working.

When to use Break-Even Calculator

  • Testing whether a business idea can cover its costs.
  • Setting a monthly sales target.
  • Judging the effect of a price change.
  • Planning a product launch or event.

Break-Even Calculator FAQ

What is the break-even point?

The level of sales at which total revenue equals total costs: no profit and no loss. Above it, each sale adds profit; below it, the business loses money.

What are fixed and variable costs?

Fixed costs stay the same whatever you sell within a period: rent, salaries, insurance. Variable costs rise with each unit: materials, packaging, transaction fees, delivery.

What is contribution margin?

Price minus variable cost per unit. It is what each sale contributes towards fixed costs and then profit.

Why is the result rounded up?

You cannot sell part of a unit, so you need the next whole unit to cover costs fully.

What if I sell several products?

Use a weighted average price and variable cost based on your expected sales mix, or calculate each product separately.

Does it include tax?

No. Use amounts excluding sales tax; income tax applies to the profit after break-even.

The most useful number in a business plan

Every business has costs that must be paid before the first sale and costs that come with each sale. The break-even point combines them into a single, intuitive figure: the number of sales needed before the business stops losing money. It turns a vague plan into a concrete target.

The calculation rests on contribution. Each unit sold brings in its price and costs its variable cost; the difference contributes to the fixed costs. Divide the fixed costs by the contribution per unit and you have the break-even quantity. A higher price, lower variable cost or lower fixed costs all bring it down.

The result is most valuable as a reality check. If breaking even needs more sales than your market, your capacity or your marketing budget can deliver, the plan needs changing before money is spent. Experimenting with price and cost assumptions shows which lever matters most.

The model is simple by design. It assumes a constant price and variable cost and a fixed level of fixed costs, which holds within a normal range of activity but not at every scale. Use it for planning and recalculate as real figures replace estimates.

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