Break-Even Calculator
Find how many units you need to sell to cover your fixed costs.
Before a business (or a single product line) turns a profit, it first has to cover its fixed costs. This calculator finds exactly how many units you need to sell — and at what revenue — to break even.
The three numbers you need
Fixed costs are expenses that don't change with sales volume (rent, salaries, insurance). Price per unit is what you charge. Variable cost per unit is what it costs you to produce or deliver one unit (materials, shipping, payment processing). The gap between price and variable cost — called the contribution margin — is what pays down your fixed costs with each sale.
What happens after break-even
Every unit sold beyond your break-even point contributes its full margin directly to profit, since fixed costs are already covered. This is why break-even analysis matters for pricing decisions — a small price increase, or a small reduction in variable cost, can meaningfully lower your break-even point and accelerate profitability.
Frequently asked questions
What if my price is close to my variable cost?
A thin contribution margin means you need very high sales volume to break even, and the business is more vulnerable to cost increases. Consider whether pricing or cost structure needs to change before scaling volume.
Does this work for a service business, not just physical products?
Yes — "units" can represent billable hours, client engagements, or subscriptions; "variable cost" is whatever cost scales directly with each unit of service delivered.