Break-even Calculator
Calculate how many units you need to sell to cover your fixed costs and reach break-even. Includes break-even revenue and contribution margin.
Break-even Calculator tool
Fixed costs don’t change with sales volume (rent, salaries, software subscriptions, etc.).
Variable costs change with volume (COGS, processing fees, packaging, fulfillment, etc.).
Informational only. Assumes constant price and costs (no tiered pricing, discounts, or economies of scale).
The break-even point is based on contribution margin: each unit sold covers variable cost first, and the remaining amount covers fixed costs.
Contribution margin: CM = Price − Variable cost
Break-even units: Fixed costs ÷ CM
Break-even revenue: Break-even units × Price
If CM ≤ 0, break-even is not achievable with the current price/cost structure.
Examples
- Fixed $5,000, price $25, variable $10 → break-even ≈ 333.33 units (≈ 334 units)
- Fixed $1,200, price $15, variable $9 → break-even ≈ 200 units
- Price $10, variable $10 → CM = $0 → break-even not possible
FAQ
- What is a break-even point?
Break-even is where total revenue equals total costs. Profit is $0 at break-even, and profit becomes positive after selling more than the break-even volume.
- What is contribution margin?
Contribution margin is price per unit minus variable cost per unit. It represents how much each unit contributes to covering fixed costs and profit.
- What if variable cost is higher than price?
Then contribution margin is zero or negative, meaning you cannot break even under those unit economics unless you change price, costs, or structure.
- Does this include taxes, shipping, or discounts?
No. Add those items into variable cost per unit or adjust price per unit before calculating.
- Is rounding to whole units important?
Yes. In real sales you can’t usually sell fractional units, so we show both an exact number and a rounded-up whole-unit estimate.