Break-Even Calculator

Find out exactly how many units you need to sell — or what revenue you need to generate — to cover all your costs and break even. Essential for any business plan or pricing decision.

Break-even formula
Break-Even Units = Fixed Costs ÷ (Price per Unit − Variable Cost per Unit)
Cost & pricing details Units · Revenue · Margin
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Rent, salaries, insurance — costs that don't change with sales
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Materials, labor, shipping per item
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$
Units needed to hit this profit target
Frequently asked questions
What is the break-even point? ›
The break-even point is the level of sales at which total revenue exactly equals total costs — neither profit nor loss. Every unit sold above break-even generates pure profit at the contribution margin rate. It's one of the most fundamental concepts in business planning, pricing, and startup analysis.
What is contribution margin? ›
Contribution margin is the selling price minus the variable cost per unit. It represents how much each unit sold contributes toward covering fixed costs and then generating profit. For example, if you sell a product for $35 and it costs $12 to make, the contribution margin is $23. You need fixed costs ÷ $23 units to break even.
How does pricing affect the break-even point? ›
Higher prices reduce the break-even point — you need fewer sales to cover fixed costs. Lower prices increase it. Even small price changes have a dramatic impact because they change the contribution margin on every single unit. A 10% price increase often reduces break-even volume by 20–30%.
What is a good break-even point for a business? ›
It depends heavily on your industry and business model. The key metric is how achievable the break-even volume is given your market size and sales capacity. Generally, businesses aim to reach break-even within 12–24 months. Subscription businesses often break even per customer much faster than product businesses.

About this break-even calculator

Our break-even calculator tells you exactly how many units you must sell to cover all costs, what revenue that represents, and how many units are needed to hit any target profit. It also shows a profit/loss table at different sales volumes.

Break-even analysis is essential for business planning, pricing decisions, new product launches, and evaluating whether a business model is viable. It answers the fundamental question: how much do I have to sell just to not lose money?