Break-Even Calculator

How many units you need to sell before you start making money.

Break-even point

—

Revenue at break-even
—
Contribution per unit
—
How this was calculated

Runs in your browser. Nothing you type is sent anywhere.

About the Break-Even Calculator

Break-Even Calculator shows how many units you need to sell before your sales cover your fixed costs, and how much revenue that takes. Every unit after that point is profit.

How to use it

  1. Enter your fixed costs: rent, salaries, software, anything that doesn't change with sales.
  2. Enter the price per unit.
  3. Enter the variable cost per unit: materials, shipping, fees.
  4. Read the break-even point in units and revenue.

Example

With $10,000 of fixed costs, a $50 price and a $30 variable cost per unit, each sale contributes $20, so you break even at 500 units, or $25,000 of revenue.

Questions

How is it calculated?

Units = fixed costs ÷ (price − variable cost per unit). The answer is rounded up, because you can't sell part of a unit.

What if my price is lower than my variable cost?

Then each sale loses money and you never break even. The calculator tells you so.

Should fixed costs be monthly or yearly?

Either, as long as you read the answer for the same period. Monthly costs give monthly break-even units.