Break-even calculator
How many units to sell to cover your costs.
- Instant
- Free
- Private (processed locally)
- No sign-up
The number every business plan must know
Before talking profit, one question: from how many sales do you stop losing money? Three inputs suffice — period fixed costs, unit variable cost and price — to get the break-even point in units, in revenue, and the contribution margin that drives it all.
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Add up your fixed costs
Rent, salaries, insurance, software… everything due even without sales, over the chosen period (month or year).
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Cost the unit
Variable cost (materials, commission, shipping) and net selling price.
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Read the threshold
Units to sell and corresponding revenue: below you lose, above every sale becomes profit.
Three levers to lower the threshold
- Cut fixed costs: every dollar of fixed cost removed saves several required sales.
- Raise the price: double effect — more margin per sale and a lower threshold (if volume holds).
- Squeeze the variable cost: supplier negotiation, packaging, logistics.
The threshold assumes constant price and costs — in reality, discounts and cost steps move it. Recompute at every offer change, and target a 20% safety margin above it.
Frequently asked questions
How is the break-even point computed?
Units to sell = fixed costs ÷ (selling price − unit variable cost). The denominator is the contribution margin: what each sale contributes to “soak up” fixed costs. With $5,000 fixed, a $30 price and $12 variable cost, you need 5,000 ÷ 18 = 278 units.
Fixed or variable: how do I sort costs?
Fixed: they fall due even at zero sales — rent, salaries, insurance, subscriptions. Variable: they follow each unit — raw materials, commissions, shipping, packaging. When in doubt, ask: “if I sell one more unit, does this cost rise?”
What if my price is below the variable cost?
Then every sale deepens the loss: no volume will save you. Raise the price, cut the variable cost or drop the product — the tool flags it immediately.
What is the contribution margin ratio for?
It tells you the share of each sales dollar available to cover fixed costs: a 60% ratio means the break-even revenue equals fixed costs ÷ 0.60. The higher it is, the faster you reach profitability.