Break-Even Calculator

Find the sales level where a product or business stops losing money and starts making profit. This is the first number to check before launching a product or signing a lease.

Formula / method: Contribution per unit = Price per unit - Variable cost per unit. Break-even units = Fixed costs / Contribution per unit. Break-even revenue = Break-even units x Price per unit.

Fixed costs ($)Price per unit ($)Variable cost per unit ($)

Enter your figures and click Calculate.

How to Use

Enter your fixed costs, such as rent and salaries, for the period.
Enter the selling price per unit.
Enter the variable cost per unit, such as materials and packaging.
Click Calculate Break-Even.
Compare the result with realistic monthly sales.

Why This Matters

Break-even turns a business plan into a target. If fixed costs are $5,000 a month and each sale contributes $25 after variable costs, you need 200 sales a month just to stand still. That single number tells you whether the plan is realistic, how much marketing you need, and what price change would do. Raising the price or cutting variable costs lowers the break-even point, while a new fixed cost raises it. Every founder should know this number before spending on stock or premises.

Frequently Asked Questions

What are fixed costs?

Fixed costs stay the same regardless of sales in the short term, such as rent, insurance, and base salaries.

What are variable costs?

Variable costs rise with each unit sold, such as raw materials, packaging, and payment fees.

What if the price is below the variable cost?

Then each sale loses money and there is no break-even point. The price must be raised or the variable cost cut before selling.

Does break-even include profit?

No. Break-even is the point where revenue exactly covers costs. Profit starts only on sales above that point.

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