Break-Even Calculator
Find out how many units you need to sell to cover your costs and start making profit.
Rent, salaries, insurance, etc.
Materials, packaging, shipping, etc.
Units to Break Even
Break-Even Revenue
Contribution Margin
Margin Ratio
| Units Sold | Revenue | Total Costs | Profit / Loss |
|---|
Frequently Asked Questions
What is the break-even point formula?▼
Break-Even Units = Fixed Costs ÷ (Selling Price − Variable Cost per Unit). The denominator is the contribution margin per unit — how much each sale contributes toward covering fixed costs after variable costs are paid.
What is contribution margin?▼
Contribution margin = Selling price − Variable cost per unit. It represents how much revenue from each sale is available to cover fixed costs and generate profit. A higher contribution margin means you reach break-even faster.
What are fixed costs vs. variable costs?▼
Fixed costs stay the same regardless of how much you produce (rent, salaries, software subscriptions). Variable costs change with production volume (raw materials, packaging, shipping, sales commissions).
How can I lower my break-even point?▼
Increase your selling price, reduce variable costs per unit, or reduce fixed costs. Even small changes compound: a 10% price increase can dramatically lower the number of units needed to break even.