Break-Even Calculator
This free break-even calculator tells you how many units you must sell, and how much revenue that is, before you stop losing money. Add an optional profit target to see the sales needed to reach it. Enter your fixed costs, price per unit and variable cost per unit.
| Units sold | Revenue | Profit or loss |
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Results are estimates based on the rates shown. Your actual fees depend on your agreement with the provider.
How to use it
- Enter your fixed costs for the period, such as rent, software and salaries.
- Enter your price per unit and the variable cost per unit (materials, fees, shipping).
- Read the break-even units and revenue. Add a target profit to see the units needed for it.
The break-even formula
Each sale contributes price minus variable cost toward covering fixed costs. Break-even units = fixed costs ÷ (price − variable cost per unit), rounded up to a whole unit.
Worked example: fixed costs of $5000.00, a price of $25.00 and a variable cost of $10.00 give a contribution of $15.00 per unit. Break-even is $5000.00 ÷ $15.00 = 334 units, which is $8350.00 in revenue.
To earn a profit of $1000.00, add it to fixed costs: ($5000.00 + $1000.00) ÷ $15.00 = 400 units.
Include card processing fees in the variable cost if they are a meaningful share of each sale.
Related tools and guides
Frequently asked questions
What is the break-even point?
It is the sales level where total revenue equals total costs, so profit is zero. Below it you lose money; above it you profit.
What counts as fixed and variable costs?
Fixed costs stay the same however much you sell in the period, such as rent or software subscriptions. Variable costs rise with each unit, such as materials, packaging, shipping and payment processing fees.
Why is there no break-even result?
If your price is not higher than your variable cost per unit, each sale adds nothing toward fixed costs, so you can never break even. Raise the price or reduce the variable cost.
Does the calculator handle several products?
No. It models one product or an average blended product. For several products, use an average price and an average variable cost.
How often should I recalculate?
Whenever your prices, costs or fees change. Pair it with the markup and margin calculators.
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