Break-Even Calculator
Find exactly how many units you need to sell each month before your business becomes profitable. Enter your fixed costs, variable cost per unit, and selling price to get your break-even point in units and revenue.
Frequently asked questions
What is a break-even analysis?
A break-even analysis tells you the minimum number of units you need to sell (or revenue you need to generate) before your total revenue equals your total costs — in other words, the point where you stop making a loss. Below break-even you are losing money; above it, you are profitable. It is a fundamental tool for pricing decisions, launch planning, and assessing business viability.
What is contribution margin and why does it matter?
Contribution margin is the amount each unit sold contributes toward covering your fixed costs, after variable costs are deducted. It equals selling price minus variable cost per unit. A higher contribution margin means you need to sell fewer units to break even. Expressed as a percentage, it shows how much of each pound of revenue is available to cover fixed costs and generate profit.
How can I lower my break-even point?
There are three levers: increase your selling price (raises contribution margin), reduce variable costs per unit (through better supplier terms, bulk purchasing, or process efficiency), or cut your fixed costs (renegotiate rent, reduce headcount, or move to lower-cost software). Even a small improvement across all three can significantly reduce the volume you need to sell before becoming profitable.
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