Break-even calculator
Enter your fixed costs, the price per unit and the cost per unit to see how many units you need to sell to break even.
Break-even point
How it works
break-even units = fixed costs ÷ (price − variable cost)break-even revenue = units × priceprofit = units × (price − variable cost) − fixed costsWorked example
- contribution: 50 − 30 = 20 per unit
- 10,000 ÷ 20 = 500 units
- 500 × 50 = 25,000 of sales a month
Frequently asked questions
What counts as a fixed cost?
Costs that do not change with how much you sell in the period: rent, salaries, software, insurance, loan payments. Variable costs grow with each unit: materials, packaging, shipping, payment fees.
What is the contribution margin?
The price minus the variable cost of one unit: what each sale contributes toward the fixed costs and, after break-even, profit.
What if the price is below the variable cost?
Then every sale loses money and there is no break-even point. Raise the price or lower the cost per unit.