Break-even calculator
Find out how many units you need to sell to cover your costs. Enter your fixed costs, the price per unit and the variable cost per unit.
- Contribution margin / unit
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- Break-even units
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- Break-even revenue
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Runs entirely in your browser. Nothing you enter is stored or uploaded.
How break-even works
Each unit you sell contributes its price minus its variable cost towards your fixed costs. Break-even is reached when those contributions add up to your total fixed costs: break-even units = fixed costs / contribution margin per unit.
Worked example
An online shop has fixed costs of 5,000 a month, sells a product for 25 and has variable costs of 10 per unit.
- Contribution per unit: 25 − 10 = 15.
- Break-even units: 5,000 / 15 = 333.3, so 334 units a month.
- Break-even revenue: 334 × 25 = 8,350 a month.
What to do with the result
If your break-even point is above what you can realistically sell, you have three levers: a higher price, lower variable costs (purchasing, packaging, shipping) or lower fixed costs. The margin calculator shows what a price rise does to your margin, and a business plan lets you back up the break-even point for a bank or investor.
Frequently asked questions
What are fixed and variable costs?
Fixed costs stay the same regardless of how much you sell (rent, insurance). Variable costs change per unit sold (materials, packaging).
What if my price is below my variable cost?
Then every sale loses money and you can never break even. The calculator flags this so you can revisit your pricing.
Should I enter amounts with or without VAT?
Without VAT or sales tax. The tax is passed on to the government and does not count as revenue or cost for your break-even point.