Break Even Calculator
The break-even point is the sales volume at which you stop losing money and start making it. This calculator finds it from three inputs: your fixed costs for the period, your selling price per unit, and your variable cost per unit. You get the break-even point in both units and revenue, plus the contribution margin that drives it — the amount each sale leaves over after variable costs to pay down your fixed base. Add a profit target and it shows the volume needed to reach that too, which is usually the more useful question. Because it runs in your browser, your cost structure never leaves your device.
Rent, salaries, insurance, software.
Materials, shipping, card fees, commission.
Adds a margin-of-safety figure.
Break-even point
267 units
Equivalent to $13,333.33 in revenue for the period.
- Contribution margin per unit
- $30.00
- Contribution margin ratio
- 60.00%
What each sale leaves over to pay down fixed costs.
Break-even analysis assumes price and variable cost stay constant and that your sales mix is stable. Rerun it whenever your cost structure changes.
How to use Break Even Calculator
- 1
Enter your fixed costs
Total the costs that stay the same regardless of sales for one period — rent, salaries, insurance, software subscriptions. Keep the period consistent, usually monthly.
- 2
Add price and variable cost per unit
Enter your selling price per unit and the cost that rises with each unit sold: materials, packaging, shipping, payment fees, commission.
- 3
Read the break-even point
See the units and revenue needed to break even. Add a profit target or your expected sales volume for the margin of safety.
Why use this tool
- Break-even point in units and in revenue
- Contribution margin per unit and as a percentage
- Target-profit mode: the volume needed to earn a specific profit
- Margin-of-safety figure once you enter expected sales
- Free and private — no account, no uploads
Frequently asked questions
- What is the break-even formula?
- Break-even units = fixed costs ÷ (price per unit − variable cost per unit). The denominator is the contribution margin. With $8,000 of monthly fixed costs, a $50 price and $20 variable cost, you break even at 8,000 ÷ 30 = 267 units per month.
- What is the difference between fixed and variable costs?
- Fixed costs do not change with sales volume in the short term — rent, salaried staff, insurance, software. Variable costs rise with each unit sold — materials, packaging, shipping, card processing fees, sales commission. Some costs are mixed, such as a utility bill with a standing charge plus usage; split those into their two parts for an accurate result.
- What is contribution margin?
- It is what one sale contributes toward covering fixed costs, calculated as price minus variable cost per unit. Once cumulative contribution equals fixed costs you are at break-even, and every unit after that is profit. A low contribution margin means you need high volume to survive.
- How do I find break-even in revenue rather than units?
- Divide fixed costs by the contribution margin ratio, where the ratio is contribution margin ÷ price. With a 60% ratio and $8,000 of fixed costs, break-even revenue is $13,333. This is the practical version for service businesses that don't sell discrete units.
- How do I work out the volume needed for a target profit?
- Add the profit target to your fixed costs before dividing: (fixed costs + target profit) ÷ contribution margin. Treating a desired profit as just another fixed cost is the standard approach, and this calculator has a field for it.
- What is margin of safety?
- The gap between your actual or expected sales and your break-even point, usually shown as a percentage. A 40% margin of safety means sales could fall by 40% before you start losing money. A thin margin of safety is a warning that a modest downturn puts you underwater.
- What are the limits of break-even analysis?
- It assumes price and variable cost per unit stay constant, which breaks down with volume discounts or tiered pricing. It also assumes a single product or a stable sales mix. Treat the result as a decision-making baseline, not a forecast, and rerun it whenever your cost structure changes.
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