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Break-Even Calculator

Find how many units you must sell each month to cover your costs.

Fixed costs per month ($) rent, software, ads budget

Price per unit ($)

Variable cost per unit ($) materials, fees, shipping

Break-even point

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Contribution margin per unit–

Contribution margin ratio–

Break-even revenue per month–

Units per day–

What is a break-even point?

Your break-even point is the number of sales at which you have covered all your costs but not yet made a profit. Every sale before that point is paying off fixed costs; every sale after it is profit. Knowing the number helps you judge whether a price is high enough, whether a monthly tool or ad budget is affordable, and how far you are from a business that pays for itself.

The formula

Contribution margin = price − variable cost per unit
Break-even units = fixed costs ÷ contribution margin
Break-even revenue = break-even units × price

Worked example

You sell a product for $25 that costs $10 per unit to make and ship, and you spend $500 a month on fixed costs. Each sale contributes $15 towards those costs. $500 ÷ $15 = 33.3, so you need 34 sales a month — about one a day — to break even. That is $850 of revenue.

How to lower your break-even point

Raise the price. Even a small increase goes straight to contribution margin.
Cut variable costs by buying in bulk, changing suppliers or cheaper shipping.
Review fixed costs such as unused subscriptions and ad spend that does not convert.

Frequently asked questions

What is the difference between fixed and variable costs?

Fixed costs stay the same however much you sell, like a software subscription. Variable costs rise with each sale, like materials, payment fees and shipping.

Why is the result rounded up?

You cannot sell part of a unit, so the break-even point is rounded up to the next whole sale.

What if my price is lower than my variable cost?

Then every sale loses money and there is no break-even point. You need to raise the price or reduce costs.

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