Enter fixed costs, price per unit and variable cost to find exactly how many units you must sell to break even.
Business numbers
Results update live as you type.
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Materials, packaging and other costs that grow with each unit sold.
Break-even units
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Enter your costs and price.
Break-even revenue
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Contribution / unit
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Formula: break-even units = fixed costs / (price per unit - variable cost per unit). Every unit sold past this point is profit.
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What break-even means
The break-even point is the sales volume where total revenue exactly covers total costs: not a dollar of profit, not a dollar of loss. Every unit sold past that point contributes its full contribution margin straight to profit.
Fixed vs variable costs
Fixed costs (rent, salaries, insurance) do not change with sales volume. Variable costs (materials, packaging, payment fees) grow with every unit. Only the gap between price and variable cost, the contribution margin, can pay down the fixed costs.
Divide fixed costs by the contribution margin (price per unit minus variable cost per unit). With $5,000 fixed costs and a $15 contribution per unit, you break even at 334 units.
What is contribution margin?
The amount each unit contributes toward fixed costs: selling price minus variable cost per unit. It is the engine of the whole break-even calculation.
Can a business never break even?
Yes. If the selling price is at or below the variable cost per unit, every sale loses money and no volume fixes it. The fix is a higher price or lower unit costs.
Does break-even include profit?
No. Break-even is the zero-profit point. Use it as the minimum target, then plan how far past it you need to go for the profit you actually want.
Is my data uploaded anywhere?
No. Every calculation happens in your browser with JavaScript. Nothing you enter leaves your device.