Break-Even Calculator

What is the break-even point?

The break-even point is the moment when your total revenue equals your total costs — you're not losing money, but you're not making a profit yet. Every sale after that point adds to your profit.

Break-Even (units) = Fixed Costs / (Selling Price − Variable Cost Per Unit)

Example

You run a small online store with $3,000/month in fixed costs. You sell products at $50 each, and each unit costs $15 to make or buy.

• Contribution margin per unit: $50 − $15 = $35
• Break-even: $3,000 / $35 = 86 units per month
• Break-even revenue: 86 × $50 = $4,300
• To make $2,000 profit: ($3,000 + $2,000) / $35 = 143 units

Why it matters

• Pricing decisions: See if your price covers your costs with room to spare.
• Business planning: Know your minimum monthly sales target to stay afloat.
• Cost management: Understand which fixed or variable costs have the biggest impact on your bottom line.
• Goal setting: Set realistic sales targets by linking profit goals to unit sales.