Free Break-Even Calculator
Enter your fixed costs, selling price, and per-unit cost to find the exact number of units — and the revenue — where you start making money.
Break-even point
How to use the break-even calculator
- Enter your fixed costs — everything you pay regardless of sales: rent, salaries, insurance.
- Enter your price per unit and the variable cost of making one unit (materials, packaging, fees).
- Read off your break-even point: the units and revenue where profit begins.
Understanding break-even
Every unit you sell contributes price minus variable cost toward covering your fixed costs — that slice is the contribution margin. Divide fixed costs by the contribution margin and you get the break-even volume: sell fewer and you lose money, sell more and each extra unit is pure contribution toward profit. The formula only works when price exceeds variable cost; if it does not, no volume ever breaks even and the calculator will tell you so. Break-even analysis is the backbone of pricing decisions: it shows whether a price cut can be rescued by volume, what a rent increase does to your targets, and the minimum viable scale for a new product. Remember it is a simplification — it assumes costs stay linear and every unit sells at full price — but as a planning compass it is unmatched.
Frequently asked questions
What is contribution margin?
Price per unit minus variable cost per unit. It is the amount each sale contributes toward fixed costs and then profit. Higher margin means a lower break-even point.
What if my price is below my variable cost?
Then you lose money on every unit and can never break even — the calculator will flag this. You must raise the price, cut variable costs, or both.
Does this work for services?
Yes. Treat one "unit" as one billable hour, project, or client, and variable cost as whatever each engagement costs you directly.
Should I include my salary in fixed costs?
If the business must pay you, yes — include the salary you need to draw. A break-even that ignores your pay is not really breaking even.