Break-even Calculator

Enter your costs and price to find exactly how many units you must sell before the business starts making money.

REVENUE COST BREAK-EVEN

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)

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.