Break-Even Calculator
Find the number of sales where your costs are covered.
How to use this tool
- Enter your fixed costs for the period, such as a month.
- Enter what one unit costs you and the price you sell it at.
- 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.
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.