Break-even calculator
See how many units — and how much revenue — you need to sell to cover your costs.
Rent, salaries, software — costs that don't change with volume.
Materials, packaging, per-sale fees for one unit.
Enter your fixed costs, variable cost, and price to see how many units you need to sell.
How to calculate your break-even point
Your break-even point is where sales exactly cover costs. Split your costs into two buckets: fixed costs that stay the same no matter how much you sell (rent, salaries, software) and variable costs that scale with each unit (materials, packaging, per-sale fees).
The gap between your price and your variable cost is your contribution margin — the amount each sale puts toward fixed costs. Divide fixed costs by that margin and you get the number of units to break even.
Frequently asked questions
- What is the break-even point?
- The break-even point is the number of units you must sell so that total revenue equals total cost — the point where you stop losing money and start making a profit.
- How do you calculate break-even units?
- Divide your fixed costs by your contribution margin (selling price minus variable cost per unit). For $2,000 in fixed costs and a $6 contribution margin, you break even at 334 units.
- What is contribution margin?
- Contribution margin is the profit each unit contributes toward fixed costs: selling price minus variable cost per unit. A higher contribution margin means fewer units to break even.
Not sure your price is right? Try the pricing calculator first, then come back to check your break-even.