Break-even Calculator
Enter your costs and price to find exactly how many units you must sell before the business starts making money.
Runs entirely in your browser — your numbers never leave this page.
How it works
The break-even point is where revenue exactly covers costs — the first sale after it is pure profit:
Break-even units = Fixed costs ÷ (Price − Variable cost)
- Contribution margin (price − variable cost) is what each sale contributes toward fixed costs. $50 − $20 = $30/unit.
- $5,000 fixed ÷ $30 margin = 167 units. Sell 168 and you're profitable.
- Three levers: raise price, cut variable cost, or cut fixed costs — each moves break-even down.
- Services: treat an hour of billable work as the "unit" — price per hour vs. cost per hour.
- This is a monthly snapshot. Seasonal businesses should run it per season.
Frequently asked questions
What is the break-even formula?
Break-even units = fixed costs ÷ (price − variable cost). Break-even revenue = units × price.
What is contribution margin?
Price minus variable cost per unit — the amount each sale contributes to fixed costs and then profit.
What if my price is below variable cost?
You can never break even — every sale loses money. Raise the price or cut per-unit costs before anything else.
Should I include my salary in fixed costs?
Yes, if the business must pay you. Many founders forget this and think they're profitable while working for free.
How do I lower my break-even point?
Raise prices, reduce per-unit costs, or cut fixed overhead — in that order of impact for most small businesses.
Break-even vs profitability?
Break-even is the zero-profit point. Everything past it is profit at the full contribution margin per unit.
How often should I recalculate?
Whenever costs or prices change — and at least quarterly. Creeping costs silently raise your break-even.
Does this work for services?
Yes — treat a billable hour as the unit: hourly rate vs. cost per hour (wages, tools, travel).
What about one-time startup costs?
Amortize them: divide by the months you expect to recover them in, and add to fixed costs.
Can break-even be zero?
Only with zero fixed costs — e.g. pure dropshipping with no overhead. Then every sale profits from unit one.