How to use Break-Even Calculator
- Enter your fixed costs for the period (rent, salaries, software and other costs that do not change with sales).
- Enter the selling price per unit and the variable cost per unit (materials, packaging, fees).
- Optional: enter a target profit.
- Read the break-even units and revenue.
About this tool
Each sale brings in the selling price and uses up the variable cost, leaving a contribution that goes toward fixed costs. Break-even units = fixed costs ÷ contribution per unit, rounded up to a whole unit. Beyond that point every sale adds to profit.
If the price is not higher than the variable cost, you can never break even, and the tool says so. To plan for profit, add a target profit and the tool adds it to the costs to be covered. These are estimates for planning and are not accounting, tax or legal advice.
Privacy: This tool runs in your browser. What you type or choose is not sent to a server by this website.
Common questions
What are fixed and variable costs?
Fixed costs stay the same however much you sell, such as rent. Variable costs rise with each unit sold, such as materials.
How can I lower my break-even point?
Raise the price, reduce variable costs, or cut fixed costs.