Free break-even calculator
Enter your fixed costs, your price per unit and your variable cost per unit, then watch your contribution margin, break-even units, break-even revenue and the units needed to hit a target profit update live. No account, no sign-up, and nothing you type leaves your browser.
Your inputs
per month
Your break-even point
211units/mo
$12,632 in monthly sales to cover $8,000 of fixed costs
- Contribution per unit
- $38.00
- Contribution margin
- 63.3%
- Units for target
- 316
Every unit past 211 adds $38.00 to profit. To clear $4,000 in profit you need 316 units a month.
How to use the calculator
Start with your fixed costs for the month, the costs that stay flat no matter how much you sell, like rent, software and salaried wages. Then set your price per unit and the variable cost of making and delivering one unit. The result panel keeps a running count of the units and the revenue you need to break even, and the optional target profit slider shows how many units it takes to clear a profit you pick.
The contribution margin is the number to watch. It is what each sale adds toward fixed costs once its own variable cost is paid. The bigger it is, the fewer units you need to break even. If you are setting your price from scratch, read how to price a product.
Move the sliders
Drag the fixed costs, price and variable cost, or use the arrow keys for fine control. The panel recalculates instantly as you go.
Read the contribution
Contribution margin is price minus variable cost. It is what each unit puts toward covering your fixed costs.
Find break-even
Break-even units are fixed costs divided by contribution margin. Below that count you are at a loss, above it you are in profit.
Aim at a target
Set a target profit and the panel shows how many units a month it takes to reach it on top of covering your costs.
The break-even formula
Break-even starts with the contribution margin per unit, which is the price per unit minus the variable cost per unit. Divide your fixed costs by that figure to get the units you need to sell, then multiply by the price to get the revenue.
As an illustrative example, say your fixed costs are $8,000 a month, you sell each unit for $60 and each one costs $22 in materials, fees and shipping. Your contribution margin is $38, so you break even at about 211 units a month, which is roughly $12,632 in sales. If the price barely clears the variable cost there is no break-even point at all, which is why it helps to understand gross margin vs net margin before you set a price.
Why the break-even point matters
The break-even point turns a pricing decision into a sales target you can actually plan around. It tells you the floor you have to clear every month before a single dollar of profit shows up, and it exposes the trap of a price that looks healthy but leaves too little contribution to cover the fixed costs.
Once you know the floor, the useful habit is to track it against your real numbers as prices, costs and volume shift. A break-even point creeping upward is an early warning worth catching. For how to think about the margin that sits on top of it, read what is a good profit margin.
Frequently asked questions
What is a break-even point?
The break-even point is the sales volume where total revenue exactly covers total costs, so profit is zero. Sell one unit more and you are in profit. Sell one less and you are at a loss. It is usually stated in units per month or in revenue.
How do you calculate the break-even point?
First work out the contribution margin per unit, which is the price per unit minus the variable cost per unit. Then divide your fixed costs by that contribution margin. The result is the number of units you need to sell to cover your fixed costs. The calculator above runs this as you move the sliders.
What is contribution margin?
Contribution margin is what each unit contributes toward fixed costs and profit after its own variable cost is paid. If a unit sells for $60 and costs $22 to make and ship, the contribution margin is $38. Every unit sold past break-even adds that amount to profit.
What is the difference between fixed and variable costs?
Fixed costs stay roughly the same no matter how much you sell, like rent, software and salaried wages. Variable costs rise and fall with each unit, like materials, packaging, per-order fees and shipping. The break-even formula treats the two separately.
Is this break-even calculator free?
Yes. The calculator runs entirely in your browser, needs no account and costs nothing. Nothing you type is sent anywhere. If you want the same math run automatically on your real sales and costs every month, that is what TrueProfit does.
Run this math on your real numbers
The calculator is a quick estimate. TrueProfit imports your sales and costs, then shows your true profit and margin by month and by category, automatically. Free to start, Pro is $19 a month and Business is $49 a month.
Free to start, no credit card.