Calculate your break-even point online free - no signup. Enter fixed costs, variable costs per unit, and selling price to find exactly how many units you need to sell to break even.
Every business has a break-even point - the sales volume below which losses accumulate. Knowing your break-even before launching a product or campaign tells you whether your pricing and cost structure are viable at realistic sales volumes.
Enter your fixed costs, variable cost per unit, and selling price per unit to calculate exactly how many units you need to sell to break even - and what revenue that represents.
Calculate break-even point before launching a new product, evaluate whether a price increase is necessary to reach profitability, analyze how reducing fixed costs affects break-even volume, compare break-even across different pricing scenarios, include break-even analysis in a business plan or investor pitch, and assess the minimum monthly sales target for a service business.
The most common question is what to include in 'fixed costs'. Fixed costs are expenses that don't change with sales volume - rent, salaries, software subscriptions, insurance. Variable costs change with each unit sold - materials, packaging, shipping, payment processing fees.
Input your total fixed costs (rent, salaries, etc.).
Enter cost per unit and your selling price per unit.
See the break-even units, revenue, and margin of safety.
See a visual cost vs. revenue breakdown chart.
Common questions about this tool and how to use it.
Break-Even Units = Fixed Costs ÷ Contribution Margin per Unit. Contribution Margin = Selling Price − Variable Cost per Unit. Example: fixed costs $10,000/month, selling price $50, variable cost $20 per unit. Contribution margin = $30. Break-even = $10,000 ÷ $30 = 334 units per month. Below 334 units, you are operating at a loss. Above 334 units, you are profitable.
Fixed costs stay constant regardless of production or sales volume: rent, salaries, insurance, software subscriptions, loan repayments. Variable costs change with each unit produced or sold: raw materials, packaging, shipping per order, payment processing fees, sales commissions. Semi-variable costs have both components - utility bills with a base charge plus usage-based charges.
Contribution margin is the amount each unit sale contributes toward covering fixed costs and eventually generating profit. Contribution Margin per Unit = Selling Price − Variable Cost per Unit. Contribution Margin % = (Selling Price − Variable Cost) ÷ Selling Price × 100. A higher contribution margin means each sale makes a larger dent in your fixed cost burden, reducing the break-even volume.
Break-even analysis tells you whether your current pricing and cost structure can realistically achieve profitability at attainable sales volumes. If your break-even requires 10,000 sales per month but your realistic market is 500, you need to either raise prices, reduce fixed costs, or reduce variable costs. It converts an abstract profitability question into a concrete unit target.
Margin of safety = Actual (or Projected) Sales − Break-Even Sales. It measures how far above break-even you are operating, expressed as units or revenue. A higher margin of safety means more buffer before losses occur if sales decline. Expressed as a percentage: (Actual Sales − Break-Even) ÷ Actual Sales × 100. A 30% margin of safety means sales can fall 30% before you reach the break-even point.
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