Break-even Calculator

A break-even calculator shows how many units you must sell before revenue covers fixed costs and variable costs. It uses price per unit, variable cost per unit, and monthly fixed costs to estimate the break-even unit volume and revenue needed.

Break-even units equal fixed costs divided by contribution margin per unit. Contribution margin is price per unit minus variable cost per unit. If your price is not higher than variable cost, the business cannot break even on each unit sold.

Fixed costs are expenses that stay mostly the same regardless of sales volume, such as rent, core salaries, software subscriptions, insurance, and equipment leases. Enter the fixed costs for the same period you want to analyze, usually one month.

Variable cost per unit is the cost tied directly to producing or delivering one additional unit. It can include materials, packaging, payment fees, fulfillment, support cost, or direct labor that scales with each sale.

Contribution margin shows how much each sale contributes toward fixed costs after variable cost is covered. A higher contribution margin lowers the number of units needed to break even and gives more room for discounts or acquisition costs.

Yes. Test different prices and variable costs to see how they change break-even units and revenue needed. Use the result to evaluate pricing, margin targets, sales goals, and whether a promotion still leaves enough contribution margin.