Break-Even Calculator

Find how many units you need to sell to cover costs.

Inputs

Fixed Costs ($)

Rent, salaries, subscriptions.

Price per Unit ($)

Average selling price.

Variable Cost per Unit ($)

Materials, fees, fulfillment.

Results

Updates instantly

134

Break-even units

Break-even Revenue

$20,000

Contribution Margin

$90

Notes

Contribution margin is 60.0% of price.

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About This Calculator

Overview

Use this break-even calculator to find the number of units and revenue you need to cover fixed costs based on price and variable cost per unit.

When to Use It

Evaluate whether a product price covers costs at your expected sales volume.
Set sales targets for a new offer or launch.
Stress test margins when costs or pricing change.

Break-even Formula

Break-even Units = Fixed Costs / (Price per Unit - Variable Cost per Unit)

Fixed Costs

Expenses that do not change with sales volume.

Price per Unit

Average selling price for one unit.

Variable Cost per Unit

Cost that scales with each unit sold.

Contribution Margin

Price per unit minus variable cost per unit.

Example Calculation

Inputs

Fixed Costs: $12,000
Price per Unit: $150
Variable Cost per Unit: $60

Output

Break-even Units: 134
Break-even Revenue: $20,100

Common Mistakes

Using discounted price but full variable cost (or vice versa).
Mixing monthly fixed costs with annual pricing.
Ignoring variable costs like payment fees or shipping.

Tips & Next Steps

Test multiple price points to see margin impact.
Update variable costs quarterly as suppliers change.
Use a conservative price to set safer sales targets.

FAQs

What is break-even point?

Break-even is the sales volume where total revenue equals total costs, resulting in zero profit or loss.

What if my contribution margin is negative?

If price per unit is less than or equal to variable cost per unit, you cannot break even without raising price or lowering costs.

Can I use this for services?

Yes. Use price per unit as your average service price and variable cost as the cost per service.