About the Break-Even Calculator
Work out how many units you must sell to cover your costs, the sales revenue at break-even, your contribution margin, and what it takes to reach a target profit.
Key features
- Break-even point in units
- Break-even point in sales revenue
- Contribution margin per unit and ratio
- Units and sales needed for a target profit
- Instant what-if analysis
- Any currency
How much do you need to sell?
Before launching a product, opening a shop or setting prices, find out how many sales it takes to cover your costs, and what it takes to reach the profit you want.
Break-even formulas
Contribution margin = Price − Variable cost per unit
Break-even units = Fixed costs ÷ Contribution margin
Break-even sales = Break-even units × Price
Units for profit = (Fixed costs + Target profit) ÷ Contribution margin
Example
| Input | Value |
|---|---|
| Fixed costs per month | 10,000 |
| Variable cost per unit | 12 |
| Price per unit | 30 |
| Contribution margin | 18 (60%) |
| Break-even | 556 units, 16,667 in sales |
| For 5,000 profit | 834 units, 25,000 in sales |
Fixed vs variable costs
| Fixed costs | Variable costs |
|---|---|
| Rent, salaries, insurance | Materials, packaging |
| Software subscriptions, loan payments | Shipping, payment processing fees |
| Equipment leases | Sales commissions |
Related tools
Profit margin calculator, ROI calculator, and discount calculator.
How to use the Break-Even Calculator
- Enter your numbers in the fields above. Units and options can be changed at any time.
- The result updates instantly as you type; there's no calculate button to press.
- Check the breakdown under the main result for the details behind the number.
- Adjust the inputs to compare scenarios, for example a different rate or term.