Break-Even Point Calculator

How many sales does it take to cover your costs? Enter your fixed costs, your price per unit and the variable cost per unit to get your break-even units, the revenue that represents, and your contribution margin. Updates as you type.

How it works

break-even units = fixed costs ÷ (price − variable cost)

contribution margin = price − variable cost

• Fixed costs stay the same regardless of sales (rent, software, salaries, tooling).
• Variable costs scale with each unit (materials, shipping, payment fees, per-sale costs).
• Raise the price or cut variable cost to grow the contribution margin and lower your break-even point.

An educational estimate assuming one product at a constant price and cost. Real businesses have mixes and step costs. Not financial advice.

FAQ

What is the break-even point?

The break-even point is the sales volume at which total revenue equals total costs — you make neither a profit nor a loss. Sell more than this and you profit; sell less and you lose money. It is one of the first numbers to know before launching a product.

How is the break-even point calculated?

Break-even units = fixed costs ÷ (price per unit − variable cost per unit). The denominator is the contribution margin — what each sale contributes toward covering fixed costs. Multiply the break-even units by price to get the break-even revenue.

What is contribution margin?

Contribution margin is the price of a unit minus its variable cost — the money each sale contributes to fixed costs and, after break-even, to profit. As a percentage it is the contribution margin ratio, which tells you how much of each dollar of sales is left after variable costs.

What if my price is below my variable cost?

Then every sale loses money and you can never break even — increasing volume only increases losses. The calculator flags this. You must raise the price or cut the variable cost per unit so the contribution margin is positive.

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