How to calculate your break-even point
Break-even is where sales cover your fixed costs, after variable costs are taken out. First calculate contribution per sale: selling price minus variable cost. Then divide monthly fixed costs by that contribution.
Break-even units = monthly fixed costs ÷ contribution per unit
Break-even revenue = monthly fixed costs ÷ contribution margin ratio
The calculator rounds the number of units up to the next whole sale. It also shows the exact revenue threshold and the revenue from the rounded unit target. For example, if each sale contributes $55 and fixed costs are $2,000, you need 37 whole sales.
What counts as a fixed cost?
Costs that generally stay the same within a period, such as rent, software, insurance, or a fixed monthly service fee. Classify costs consistently with your records.
What is a variable cost per sale?
A cost that changes with each unit sold, such as materials, packaging, transaction fees, or per-order delivery costs.
What if I sell several products?
This calculator assumes one product or a consistent average mix. For multiple products with different prices and costs, use a weighted sales mix for a more accurate estimate.