Break-Even Calculator

Find the number of sales where your costs are covered.

Costs that do not change with sales, such as rent or software.
What it costs you to make or buy one more unit.

Results

Break-even units
Break-even revenue
Profit per unit
Units for your target
Revenue for your target

Units are rounded up, since you cannot sell part of a unit.

How to use this tool

  1. Enter your fixed costs for the period, such as a month.
  2. Enter what one unit costs you and the price you sell it at.
  3. Add a profit target if you want to know the sales needed to hit it.

How it works

Each sale contributes its price minus the variable cost towards your fixed costs. The break-even point is the number of sales needed for those contributions to cover the fixed costs.

If the selling price is not higher than the variable cost, each sale loses money and there is no break-even point.

Profit per unit = selling price - variable cost Break-even units = fixed costs / profit per unit (rounded up) Break-even revenue = break-even units x selling price Units for a target = (fixed costs + target) / profit per unit

Example. Fixed costs 5,000, variable cost 6, price 10. Each unit contributes 4, so you break even at 1,250 units and 12,500 in revenue.

Frequently asked questions

What counts as a fixed cost?

Rent, salaries, insurance, subscriptions and loan payments. They stay the same whether you sell one unit or a thousand.

What counts as a variable cost?

Materials, packaging, delivery and sales commission. They rise with every unit sold.

Can I use it for a service?

Yes. Treat one job or one hour as a unit, and its direct cost as the variable cost.

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