Break-Even Calculator
Calculate how many units you need to sell to cover your costs. Enter fixed costs, selling price, and variable cost per unit — get break-even units, revenue, and contribution margin.
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Enter your costs and pricing
Find the exact sales volume needed to cover all costs.
Rent, salaries, insurance, software — costs that do not change with sales volume.
Materials, packaging, direct labour — costs that change per unit sold.
Optional. Set a profit goal to see how many units beyond break-even you need to hit it.
Optional. See how far above or below break-even you currently are.
Break-even analysis
Enter your costs and price above.
Break-even questions answered
The break-even point is the level of sales at which total revenue equals total costs — meaning the business makes neither a profit nor a loss. Any sales above this point generate profit; any below result in a loss.
Break-even units = Fixed Costs ÷ (Selling Price per Unit − Variable Cost per Unit). The denominator is called the contribution margin per unit. Break-even revenue = Break-even units × Selling Price.
Fixed costs do not change with production volume — rent, salaries, insurance, software subscriptions. Variable costs change with each unit produced or sold — raw materials, packaging, payment processing fees, delivery costs.
Contribution margin = Selling Price − Variable Cost per Unit. It is the amount each unit sale contributes toward covering fixed costs and generating profit. A higher contribution margin means fewer units needed to break even.
It shows the minimum sales needed to survive, helps price products correctly, identifies when a business becomes profitable, and gives investors and lenders confidence in financial planning.
For services, treat each project or client engagement as a unit. Selling price = contract value. Variable cost = direct hours × cost per hour + any direct expenses. Fixed costs = monthly overheads ÷ number of projects.
Margin of safety = Actual sales − Break-even sales. It shows how far sales can fall before the business makes a loss. A higher margin of safety means a more financially resilient business.
If your break-even at current pricing requires more units than your market can realistically deliver, you need to either raise prices, reduce fixed costs, or reduce variable costs. Break-even analysis forces these trade-offs to be explicit.