Break-Even Calculator
See how many units you need to cover fixed costs — and what that looks like in revenue.
Inputs
Result
Visual breakdown
Formula
Contribution margin per unit = price − variable cost. Break-even units = fixed costs ÷ contribution margin. Break-even revenue = units × price. Profit at N units = N × contribution − fixed costs.
Example
Fixed $1,000, price $25, variable $10 → CM $15/unit → break even at 67 units (≈ $1,675 revenue). At 100 units, profit is $500.
Related: Profit margin · Markup · Monthly budget
How to use
- Group all fixed costs (rent, salaries, software) into one number.
- Use realistic variable cost — materials, fulfillment, processing.
- Try a higher price and lower variable cost to see units drop fast.
When it's useful
- Validating a product or service idea.
- Setting monthly sales targets.
- Comparing pricing scenarios.
Common examples
Frequently asked
What is contribution margin?
The dollars per unit left to cover fixed costs after paying variable costs. Higher CM → fewer units to break even.
What if price ≤ variable cost?
Each sale loses money — no break-even exists. Raise price or cut variable cost first.
Is this monthly or annual?
Both work — use one consistent period. Monthly fixed costs give monthly break-even units.
Does this include taxes?
No — keep this pre-tax. Add a tax buffer to your fixed costs if you want a post-tax target.