Break-Even Calculator

The formula

Each sale contributes (price − variable cost) toward fixed costs — the contribution margin. Break-even units = fixed costs ÷ contribution margin. Sell fewer and you lose money; every unit beyond it adds the full margin to profit.

What counts as fixed vs variable?

• Fixed — costs you pay regardless of sales: rent, salaries, insurance, software subscriptions, loan payments.
• Variable — costs that scale with each unit: materials, packaging, payment-processing fees, shipping, per-unit labor.

Frequently asked questions

My break-even number looks impossibly high. Now what?

You have three levers: raise the price, cut the variable cost per unit, or cut fixed costs. Small price changes are powerful — with a 20 margin on a 50 price, a 10% price rise cuts break-even volume by 20%.

What period should the fixed costs cover?

Any period you like — enter monthly fixed costs and the result is units per month; enter yearly and it's units per year. Just keep everything in the same period.