Break Even Calculator

The break-even point is the number of units you must sell to cover total fixed costs after each unit's variable costs are paid. At break-even, profit is exactly zero; one more unit pushes you into profit, one fewer keeps you at a loss.

Contribution margin is the price per unit minus the variable cost per unit. It is the amount each sale 'contributes' to covering fixed costs (until fixed costs are fully covered) and to profit (after that). It is the key number behind every break-even and profit calculation.

Break-even units = fixed costs / contribution margin per unit. Break-even revenue is break-even units times the price per unit. Profit at any volume above break-even is the contribution margin times the units above break-even.

Costs that do not change with the number of units sold over your planning period: rent, salaries, software subscriptions, insurance, and so on. Variable costs (materials, per-unit shipping, payment processing) change with sales volume.

Either run the calculator on each product separately and add the break-even points, or use a weighted average contribution margin across your product mix. For more accurate multi-product break-even analysis, consult an accountant.

No. Break-even is a useful planning lens but it does not account for taxes, financing costs, seasonality, inventory timing, or cash flow. It is one piece of a full financial model.