Finance
Break-Even Calculator
Calculate your break-even point in units and revenue from fixed costs, price, and variable cost per unit. Free and instant.
Enter fixed costs, selling price, and variable cost to find your break-even point.
✳ Free · No signup · Runs in your browser — we never store your numbers
Small business guide
What this tool helps you do
Use this break-even calculator to find exactly how many units (or how much revenue) you need to sell before your business starts making a profit. It is built for small business owners, makers, retailers, and service providers who want a clear number instead of guessing.
Break-even is the point where total revenue equals total costs. Below it you lose money. Above it you make profit. Knowing this number changes how you price, how much you spend on marketing, and whether a new product or hire makes sense.
How to use this tool
- 1
Enter your total fixed costs (rent, software, insurance, salaries that don't change with sales).
- 2
Enter your selling price per unit (or average revenue per sale).
- 3
Enter your variable cost per unit (materials, transaction fees, contractor time that only happens when you sell).
- 4
See the break-even units and break-even revenue instantly.
- 5
Play with price or costs to see how the number moves.
Formula
Contribution margin per unit = selling price − variable cost per unit. Break-even units = fixed costs ÷ contribution margin per unit. Break-even revenue = break-even units × selling price.
- Fixed costs are costs you pay whether you sell anything or not.
- Variable costs are only incurred when you make a sale.
- If your contribution margin is zero or negative, you can never break even at this price — you lose money on every unit.
Examples
Product business
You have $4,000/month in fixed costs. You sell widgets for $50 with $18 in variable costs (materials + fees).
Inputs
- Fixed costs: $4,000
- Price per unit: $50
- Variable cost: $18
Result
Contribution margin: $32 per unit. Break-even: 125 units. Break-even revenue: $6,250.
You need to sell 125 units just to cover costs. Every unit above 125 contributes $32 toward profit.
Service / project business
A consultant has $6,500/month fixed costs (software, insurance, marketing, part-time help). Average project fee is $2,500 with $700 in direct variable costs (contractors, travel).
Inputs
- Fixed costs: $6,500
- Price per "unit": $2,500
- Variable cost: $700
Result
Contribution margin: $1,800 per project. Break-even: 4 projects. Break-even revenue: $10,000.
Four projects cover the fixed costs. The fifth project is almost pure profit (minus taxes).
Key terms
Fixed costs
Costs that stay the same regardless of how many units you sell.
Variable costs
Costs that increase directly with each sale.
Contribution margin
The amount each sale contributes toward covering fixed costs and profit (price minus variable cost).
Break-even point
The sales volume at which total revenue exactly equals total costs.
How to interpret the result
Use break-even for go/no-go decisions
Before launching a product or running a big campaign, model whether you can realistically hit the volume needed.
Price and variable cost have the biggest leverage
Raising price by $5 or lowering variable cost by $5 has a much larger effect on break-even than cutting fixed costs by the same amount.
Watch your contribution margin
If contribution margin is thin (<30% of price), even high volume may not produce meaningful profit after overhead.
Common mistakes
- Forgetting some fixed costs (your own salary, software subscriptions, insurance).
- Treating all costs as variable.
- Setting price so low that contribution margin is negative.
Frequently asked questions
What is a good break-even volume for a small business?+
It depends on your market size and capacity. The important thing is that it is achievable and that the margin above break-even is healthy. Many small businesses aim to break even within 3–6 months of launch.
Does this work for subscription or service businesses?+
Yes. Treat "one subscription" or "one project" as a unit. Just be honest about the variable costs that occur for each new customer or project.
What if I have multiple products with different margins?+
Run the calculator for each major product line separately, or use a weighted average contribution margin. The single-product version here is intentionally simple and fast.