Free tools / Break-Even Calculator
Work out your break-even point
The units and the revenue you need to cover costs, plus what changes if you move price.
The full read
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Fixed costs, price, variable cost, and the units you need to break even.
Your break-even point is how many units you have to sell before you stop losing money. Enter three numbers to find it, and the monthly revenue that goes with it.
Break-even units = fixed costs divided by the contribution margin per unit (your price minus the variable cost of making or delivering one unit).
If your price doesn't clear your variable cost, no amount of volume breaks even: you lose more with every sale. That's the first thing this calculator checks.
Break-even is a floor, not a goal. It tells you the volume that keeps the lights on, so you can sanity-check whether that's realistic before you commit.
Want proof it’s not made up? See real ideas run through this tool: the buyer, the spots, and the opener actually sent.
Questions
3 answeredHow do I calculate the break-even point?
Divide your fixed costs by the contribution margin per unit (price minus variable cost per unit). The result is how many units you must sell to cover your costs. Enter the three numbers above to get it instantly.
What is contribution margin?
Contribution margin is what's left from each sale after the variable cost of that unit: price minus variable cost. It's the amount each sale contributes toward covering your fixed costs, so a bigger margin means a lower break-even point.
What if my variable cost is higher than my price?
Then you lose money on every unit and can never break even on volume alone. You have to raise the price or cut the variable cost until each sale clears a positive margin before any quantity makes sense.
The guide behind this tool
How to calculate your break-even point
Calculate your break-even point by dividing fixed costs by contribution margin per unit. Here is the formula, a worked example, and the trap most founders hit.
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