Break-Even Calculator
Calculate your break-even point in units and revenue. Find out how many units you need to sell to cover your fixed and variable costs.
Break-Even Analysis
How to Use This Tool
- Enter your total fixed costs for the period (e.g. monthly rent, salaries, insurance, software subscriptions).
- Enter the price you charge per unit.
- Enter the variable cost to produce or deliver one unit (materials, packaging, shipping, commissions).
- Review the break-even point in units and revenue, along with your contribution margin and contribution margin ratio.
- Adjust price or costs to see how the break-even point shifts before committing to a pricing or cost decision.
Formula & How It Works
Contribution Margin per Unit
Contribution Margin = Price per Unit − Variable Cost per UnitThis is the amount each unit sold contributes toward covering fixed costs before any profit is made.
Break-Even Units
Break-Even Units = Fixed Costs ÷ (Price − Variable Cost)The number of units you must sell for total revenue to exactly equal total costs.
Break-Even Revenue
Break-Even Revenue = Break-Even Units × Price per UnitThe total sales dollars needed to cover all fixed and variable costs.
Practical Examples & Common Use Cases
Small coffee cart
Fixed costs are $10,000/month (rent, staff, insurance). Each coffee sells for $50 with $20 in variable cost, so contribution margin is $30. Break-even units = $10,000 ÷ $30 = 334 units. Break-even revenue = 334 × $50 = $16,700/month.
Online course launch
A creator has $2,000/month in fixed platform and marketing costs. The course sells for $150 with a $10 variable cost (payment processing + hosting). Contribution margin = $140. Break-even units = $2,000 ÷ $140 = 15 sales/month to cover costs.
Boutique clothing line
Fixed costs of $25,000/month (studio rent, salaries). Each garment sells for $80 with $35 variable cost (fabric, labor, shipping). Contribution margin = $45. Break-even units = $25,000 ÷ $45 ≈ 556 units, or $44,480 in monthly revenue.
Frequently Asked Questions
Fixed costs stay the same regardless of sales volume: rent, salaries, insurance, software subscriptions. They must be paid even if you sell zero units.
Variable costs change with each unit sold: raw materials, packaging, shipping, payment processing fees, sales commissions.
Reduce fixed costs, reduce variable costs per unit, or increase your price. Each makes the break-even point easier to reach.
It depends on how you enter fixed costs. If you enter monthly fixed costs, the result is monthly break-even. For annual, enter annual fixed costs.
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