When will you start making money?
Every sale contributes something towards your fixed costs — rent, salaries, software. The break-even point is where those contributions exactly cover the fixed costs. Enter your fixed costs, the variable cost of each unit and your selling price to see the number of units and the sales revenue you need.
Add a target profit to see how many units it takes to reach it. If your price doesn't even cover the variable cost, the tool tells you clearly.
How to calculate break-even
- 1
Enter fixed costs
Costs that don't change with sales, for the period.
- 2
Enter the variable cost per unit
Materials, packaging, shipping, fees.
- 3
Enter the selling price
Price per unit before tax.
- 4
Add a target profit (optional)
See the units needed to reach it.
Key features
Break-even units and revenue
Rounded up to whole units.
Contribution margin
Per unit and as a ratio.
Target profit
Units and sales needed.
Loss warning
Flags prices below unit cost.
Common uses
- Startups: Test whether a business model can work.
- Pricing decisions: See how price changes move break-even.
- Events and products: Plan ticket or unit sales targets.
Tips and good to know
- Small price increases can cut the break-even point dramatically, because all of the extra goes to contribution.
- Pair it with the Profit Margin Calculator to set prices.
Frequently asked questions
What is the break-even formula?
Break-even units = fixed costs ÷ (price − variable cost per unit).
What is contribution margin?
Price minus variable cost per unit — the amount each sale contributes to fixed costs and profit.
What if my price is below my variable cost?
Then every sale loses money and you can never break even; you need to raise prices or reduce unit costs.