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Break-Even Calculator
How much to sell to not lose.
Your business
Fixed costs vs price and variable cost per unit
$5,000
$80
$30
$0.00
Break-even point
100units / month
Revenue
$8,000
Contribution margin
$50
Margin %
62.5%
Reading: Every unit sold past unit 100 is pure profit of $50.
How this tool works
The break-even point is the minimum sales volume that covers all your costs with neither loss nor profit. It's the first metric any investor or partner will ask for before putting money in.
The formula is simple: break-even (units) = fixed costs ÷ (price − variable cost per unit). This calculator gives it in units and revenue, and projects net profit for volumes above break-even.
Formula
Break-even (units) = fixed costs ÷ contribution margin per unit. Contribution margin = price − variable cost.
Frequently asked questions
- Fixed vs variable costs?
- Fixed: rent, base salaries, software, insurance — paid whether you sell or not. Variable: materials, commissions, packaging — scale per sale.
- What if I sell services?
- 'Price' is your rate per project or hour. 'Variable cost' is project-specific materials or subcontractors. Your salary, office and insurance are fixed.
- Does it work for SaaS?
- Yes. Variable cost is usually near zero (server + support). Break-even depends almost only on how many subscriptions cover monthly fixed costs.
- How fast should I hit it?
- Restaurants: 12–18 months. Physical e-comm: 6–12 months. Healthy SaaS: 18–36 months (with proper runway). If you don't project break-even in 5 years, rethink.