📈 Business & Marketing

Break-Even Calculator

Find the exact units and revenue needed to break even. Free online break-even point calculator for any business.

Loading calculator…

What This Calculator Tells You

Your break-even point is the sales level at which revenue exactly covers costs — no profit, no loss. Below it you lose money; every unit sold above it adds profit.

The calculator gives you break-even in both units and dollars, plus your contribution margin: how much each sale contributes toward fixed costs.

What to Enter

Fixed costs ($) — costs you pay regardless of how much you sell, for the period you care about (usually a month): rent, salaries, insurance, software subscriptions, loan payments.
Price per unit ($) — what a customer pays for one unit, after any typical discount.
Variable cost per unit ($) — costs that rise with each sale: materials, packaging, shipping, payment fees, sales commissions.

The price must be higher than the variable cost. If it is not, each sale loses money and there is no break-even point — the calculator will not show a result.

Worked Examples

1. A coffee cart

Monthly fixed costs are $4,200 (permit, cart lease, insurance, the owner's draw). A coffee sells for $5.00 and costs $1.50 in beans, milk, cup and card fees.

Enter $4,200, $5.00 and $1.50 → 1,200 cups a month, break-even revenue $6,000, contribution margin $3.50 a cup.
That is about 40 cups a day over a 30-day month.

2. The same cart after a price increase

Raising the price by 50 cents, with costs unchanged:

Enter $4,200, $5.50 and $1.50 → 1,050 cups a month, contribution margin $4.00.
A 10% price rise cut the break-even volume by 12.5% — 150 fewer cups to sell every month.

3. A small SaaS product

Fixed costs are $60,000 a month (team, office, tools). The plan costs $99 a month, and hosting, support and payment fees cost $15 per customer.

Enter $60,000, $99 and $15 → 715 paying customers, break-even revenue of about $70,714 a month.
The exact answer is 714.29, so the calculator rounds up: with 714 customers you would still be $24 short.

How It’s Calculated

Break-Even Units = Fixed Costs ÷ (Price per Unit − Variable Cost per Unit). Break-Even Revenue = Break-Even Units × Price per Unit.

How to Read Your Result

Compare with what you sell today. If you sell 1,500 units and break even at 1,200, your margin of safety is (1,500 − 1,200) ÷ 1,500 = 20% — sales can fall 20% before you make a loss.
Contribution margin is the lever. Raising price or cutting variable cost lowers break-even faster than most cost-cutting on fixed costs.
Check it against capacity. If break-even is higher than you can realistically produce or sell, the plan needs to change — not just the forecast.
Read the full method in our step-by-step break-even guide.

Common Mistakes to Avoid

Treating semi-variable costs as fixed. Hosting, part-time staff and utilities often grow with volume. Split them, or your break-even will be too low.
Forgetting payment and platform fees. Card fees, marketplace commissions and shipping are variable costs per sale.
Using list price when you usually discount. Use the average price customers actually pay.
Mixing time periods. Monthly fixed costs give monthly break-even; do not combine them with yearly sales figures.
Averaging very different products. For several products with different margins, use a weighted average contribution margin.

Built and maintained by GenAlpha Tools Editorial. Formula tested against known answers and edge cases · last reviewed October 2026. How we calculate · Report an error

When to Use This Calculator

Test whether a new product, location or hire can pay for itself.
See how much a price change reduces the sales you need.
Set monthly sales targets that cover costs.
Explain a business plan's risk to a lender or partner.

Frequently Asked Questions

What is contribution margin?

Price minus variable cost per unit. It is the amount each sale contributes toward fixed costs; once those are covered, it becomes profit.

Why does the calculator round break-even units up?

Because you cannot sell a fraction of a unit, and rounding down would leave you just short of covering costs. 714.29 units means you need to sell 715.

How do I calculate break-even for a service business?

Treat one billable hour, project or client as the "unit", or work in dollars: break-even revenue = fixed costs ÷ contribution margin ratio, where the ratio is (revenue − variable costs) ÷ revenue.

Does break-even include taxes?

Standard break-even uses pre-tax figures. Income tax is paid on profit, so it does not change the point where profit is zero.

How can I lower my break-even point?

Raise the price, reduce variable cost per unit, or cut fixed costs. Price changes usually have the largest effect.

Do you store the values I enter?

No. All calculations happen in your browser. Your data never leaves your device.

Related Guides

Related Calculators

📈