Break-Even Calculator
Find out how many units you need to sell to cover your costs, how much revenue that is, and what it takes to reach a profit target.
Rent, salaries, software, insurance...
Break-even point
250 units
Exact value: 250.00 units
Break-even revenue
$12,500
Contribution margin per unit
$20.00
40.0% of price
Units for target profit
300
Revenue for target profit
$15,000
Break-even formula
- Contribution margin per unit = price − variable cost per unit
- Break-even units = fixed costs ÷ contribution margin per unit
- Break-even revenue = break-even units × price (or fixed costs ÷ contribution margin ratio)
- Units for a profit target = (fixed costs + target profit) ÷ contribution margin per unit
Because you cannot sell part of a unit, the headline result is rounded up to the next whole unit.
Worked example
Your fixed costs are $5,000 a month. You sell a product for $50 and each unit costs $30 to make and ship.
- Contribution margin: $50 − $30 = $20 per unit (40 % of the price)
- Break-even: $5,000 ÷ $20 = 250 units a month
- Break-even revenue: 250 × $50 = $12,500
- For a $1,000 monthly profit: ($5,000 + $1,000) ÷ $20 = 300 units
Try raising the price to $55 in the calculator: the contribution margin grows to $25 and the break-even point drops to 200 units. Small price changes often move the break-even point more than cost cutting does.
Frequently asked questions
What is a break-even point? +
It is the sales volume at which total revenue equals total costs, so you make neither a profit nor a loss. Every unit sold above it adds profit equal to its contribution margin.
What counts as fixed costs and what as variable costs? +
Fixed costs stay the same whatever you sell in the period: rent, salaries, software subscriptions, insurance. Variable costs grow with each unit: materials, packaging, shipping, payment fees and sales commissions.
Why does the calculator show no result? +
If the price is equal to or lower than the variable cost per unit, each sale adds nothing or loses money, so you can never cover the fixed costs. Raise the price or lower the variable cost.
Which period should I use? +
Any period works as long as fixed costs and the result use the same one. Enter monthly fixed costs to get the units you must sell per month, or yearly costs for a yearly target.
For information only. This calculator gives estimates based on the numbers you enter. It is not financial, tax or investment advice. Check important decisions with a qualified professional.
More free calculators
Freelance Hourly Rate Calculator
Turn your income goal, expenses, taxes and time off into an hourly and day rate.
YouTube Money Calculator
Estimate YouTube ad revenue from daily views and an RPM range you choose.
TikTok Money Calculator
Estimate Creator Rewards earnings from qualified views and your own RPM.
SaaS Metrics Calculator
MRR, ARR, ARPU, churn, LTV, LTV:CAC and CAC payback in one place.
Profit Margin Calculator
Margin and markup from cost and price, or the price for a target margin.
Compound Interest Calculator
Grow savings with monthly deposits and see a year-by-year breakdown.