Break-Even Calculator
Find how many units you need to sell — and at what revenue — to cover your fixed and variable costs.
Results are for general guidance only — not professional advice. Learn more.
How to use this tool
Enter your fixed costs, variable cost per unit, and selling price per unit to calculate how many units you need to sell to break even each month.
- Enter your total Fixed Costs per month — costs that do not change with the number of units sold, such as rent, salaries, and software subscriptions.
- Enter your Variable Cost per Unit — costs that increase with each unit produced or sold, such as materials, packaging, or delivery.
- Enter your Selling Price per Unit — the price a customer pays for one unit.
- Read off the break-even units, break-even revenue, and contribution margin figures instantly.
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Frequently asked questions
What is the break-even point?
The break-even point is the level of sales at which total revenue equals total costs, resulting in neither profit nor loss. It tells you the minimum number of units you need to sell (or the minimum revenue you need to generate) to cover all your costs. Selling beyond this point generates profit.
How do I use the break-even point in my business?
Use the break-even point to set sales targets, evaluate the viability of a new product or business, assess the impact of price changes, and understand how much of a buffer you have between current sales and the break-even level. It is a key figure for budgeting and financial planning.
What is contribution margin?
Contribution margin is the selling price per unit minus the variable cost per unit. It represents how much each unit sold contributes to covering fixed costs and, once fixed costs are covered, generating profit. A higher contribution margin means fewer units need to be sold to break even.
What if my selling price equals my variable cost?
If the selling price equals the variable cost, the contribution margin is zero, which means every unit sold generates no contribution to fixed costs at all. In this scenario, break-even is impossible — you would need to either raise your price or lower your variable costs to make the business viable.