Break-Even Calculator

How many units to cover your costs

Launching a product or business? Enter your fixed costs, price and per-unit cost to find the exact point where you stop losing money and start making it.

How break-even works

Each unit sold contributes price − variable cost toward your fixed costs. Divide fixed costs by that contribution margin and you get the number of units to break even. Everything sold after that is profit.

Fixed vs. variable costs

Fixed costs don't change with volume — rent, salaries, software, insurance. Variable costs scale with each unit — materials, packaging, payment fees, shipping. Sorting your costs correctly is the whole game: misclassify a big variable cost as fixed and your break-even point will be badly off.

Using the number

Break-even is a sanity check before you launch or price: if hitting it means selling more than your market realistically supports, the plan needs a higher price, lower costs or both. Raising price or trimming variable cost lifts the contribution margin and pulls the break-even point down fast — nudge the inputs to see the leverage.

Break-Even Calculator: frequently asked questions

What is the break-even point?

The number of units (or revenue) at which total income equals total costs — no profit, no loss.

What is contribution margin?

The selling price of a unit minus its variable cost — the amount each sale contributes toward fixed costs and profit.

How do I lower my break-even point?

Raise the price, cut the variable cost per unit, or reduce fixed costs — each increases the contribution margin or shrinks what it has to cover. Even small price increases move the break-even point down surprisingly fast.

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