Break-Even Point Calculator
Your numbers
Results
How to Use This Break-Even Calculator
- Fixed costs — rent, salaries, insurance, software: costs you pay whether you sell 0 or 1,000 units.
- Selling price — what the customer actually pays per unit or job.
- Variable cost — materials, packaging, transaction fees: costs that rise with each sale.
- Target profit — optional. Leave at 0 to find the pure break-even point.
The break-even units figure is the minimum sales needed to cover all costs. Once you exceed it, every additional unit generates the contribution margin as profit.
Last reviewed: July 25, 2026. Formula verified against standard managerial accounting method.
How to use this break-even calculator
- Enter your monthly fixed costs — everything you pay even if you sell nothing: rent, salaries, insurance, subscriptions, loan payments.
- Enter your selling price per unit — what one customer pays for one product or service.
- Enter your variable cost per unit — what each sale costs you: materials, shipping, card processing fees, commissions.
- Optionally set a target profit — the calculator shows how many units you need to hit that profit, not just break even.
- Read the results — break-even units, break-even revenue, contribution margin, and a daily sales pace. Everything updates instantly as you type.
What is a break-even point?
Your break-even point is the number of sales at which total revenue exactly covers total costs — you're not losing money, but not making any either. Every sale beyond it contributes pure profit. It's the single most useful number for pricing decisions, launch planning, and knowing whether a business idea is viable before you commit.
The break-even formula, explained
Break-even units = Fixed costs ÷ (Price per unit − Variable cost per unit)
The bottom half of that formula — price minus variable cost — is your contribution margin: what each sale "contributes" toward covering fixed costs. If you sell a product for $50 that costs $20 to deliver, each sale contributes $30. With $5,000 in monthly fixed costs, you need 167 sales to break even (5,000 ÷ 30).
Fixed vs. variable costs — get this right
Fixed costs stay the same whether you sell 10 units or 1,000: rent, salaries, insurance, software subscriptions, equipment leases. Variable costs scale with each sale: raw materials, packaging, shipping, payment processing fees, sales commissions. Mixing these up is the most common break-even mistake — labor is fixed if staff are salaried, variable if you pay per job.
How to lower your break-even point
Three levers: raise prices (a 10% price increase often cuts break-even volume by 20–30% because it flows straight into contribution margin), cut variable costs (negotiate materials, switch processors), or cut fixed costs (sublease space, drop unused subscriptions). Run each scenario in the calculator above and watch the units number move.
Industry-specific versions
Margins and cost structures differ wildly by business type, so we built pre-configured versions: coffee shops, restaurants, food trucks, landscaping businesses, and service businesses. Planning a build-out? Pair this with our construction cost estimator, and once you're selling, our free invoice generator handles billing.
Frequently Asked Questions
What is the break-even point formula?
Break-even units = Fixed costs ÷ (Selling price per unit − Variable cost per unit). Break-even revenue = break-even units × selling price. This calculator does both automatically.
What is contribution margin?
It's your selling price minus your variable cost per unit — the amount each sale contributes toward covering fixed costs. Once fixed costs are covered, the contribution margin from each additional sale is profit.
What counts as a fixed cost?
Any cost that doesn't change with sales volume: rent, salaried payroll, insurance, software subscriptions, loan payments, equipment leases. If it shows up on your bank statement even in a zero-sales month, it's fixed.
Can I use this for a service business instead of products?
Yes — treat one "unit" as one client, one project, or one billable hour. We also have a dedicated service business break-even calculator with labels and defaults set up for services.
Is my data saved or sent anywhere?
No. The calculator runs entirely in your browser. Nothing you type is uploaded, stored, or tracked.