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Calculate break-even point for your business
Fill in the fields and click Calculate to see your results
The Break-Even Calculator finds the exact sales volume at which your total revenue equals your total costs — the point where you stop losing money and start making it. It returns the break-even quantity in units and the corresponding revenue figure. The calculation uses the contribution margin method: Break-Even Units = Fixed Costs ÷ (Price per Unit − Variable Cost per Unit). The contribution margin is how much each unit sold contributes toward covering fixed costs. Once enough units are sold to cover all fixed costs, every additional unit sold is profit.
1. Enter your total fixed costs — rent, salaries, insurance, and any costs that don't change with output. 2. Enter your selling price per unit. 3. Enter your variable cost per unit — materials, packaging, commissions, and costs that scale with each unit sold. 4. Click Calculate. You'll see the break-even unit count, the break-even revenue, and your contribution margin per unit. 5. Use the result to set sales targets: you must sell at least the break-even quantity before the business is profitable.
The break-even point is the level of sales at which total revenue equals total costs — neither profit nor loss. Any sales above this level generate profit; below it, a loss. It is the minimum you must sell to keep the business viable.
Fixed costs stay the same regardless of how many units you sell: rent, loan repayments, salaried staff, software subscriptions, insurance premiums, and depreciation. They're incurred even if you sell nothing.
Variable costs change in proportion to output: raw materials, packaging, per-unit shipping, sales commissions, and payment processing fees. If you sell twice as many units, your variable costs roughly double.
The contribution margin is selling price minus variable cost per unit. It represents how much each sale contributes toward covering fixed costs. A higher contribution margin means fewer sales are needed to break even.
Run the calculator at your current price, then try higher prices to see how the break-even quantity drops. If you can realistically sell the break-even quantity at a higher price, raising prices may be more viable than trying to sell more units at a lower margin.