Business operations
Break-Even Calculator
Before you set a price or plan capacity, know the number of units it actually takes to cover what you're already spending.
Interactive tool
Break-Even Point Calculator
How many units do you need to sell to cover fixed costs? Foundation math for pricing decisions, capacity planning, and new-product launches.
Costs that don't change with volume: rent, salaries, insurance, software subscriptions.
Costs that scale with volume: materials, fulfillment, payment processing, sales commission.
Break-even point
250 units
= $25,000 in monthly revenue
- Contribution per unit
- Each unit sold contributes this much toward covering fixed costs.
- $60.00
- Contribution margin %
- % of price that's available to cover fixed costs + profit.
- 60.0%
Frequently asked
What's the difference between fixed and variable costs?
Fixed costs don't change with how much you sell — rent, salaries, insurance, software subscriptions. Variable costs scale with volume — materials, fulfillment, payment processing, sales commission. Break-even math only works if you sort your costs into the right bucket; a cost that's really semi-variable (like part-time labor added at higher volume) should be modeled carefully.
What if my price is close to my variable cost?
A thin contribution margin means it takes a lot of volume to break even, and the business is fragile to a cost increase or a price cut. If price doesn't clear variable cost at all, every sale loses money before fixed costs are even considered — that's a pricing or cost-structure problem to fix before scaling volume.
Does break-even work for a business with several products?
This calculator models one product or service line at a time. For a multi-product business, either compute break-even per line, or use a weighted-average contribution margin based on your sales mix — mixing all the products into one blended number can hide which lines are actually carrying the business.