Enter your costs and price
Fixed costs for the period, the selling price and the variable cost of each unit.
Break-even calculator
Enter your fixed costs, price and variable cost per unit and see the number of sales needed to break even. Add a profit target or expected sales to see what they mean.
- Free
- No sign-up
- Runs in your browser
100% private — the calculation is done in your browser and nothing is sent to any server.
How it works
Optionally add a target
A profit you want, or the number of units you expect to sell.
Read the break-even point
Units and revenue needed, contribution per unit and your result.
When does the business start to earn money?
Before launching a product, opening a shop or taking on a fixed commitment, the first question is how much you need to sell before you stop losing money. The break-even point is that number: the level of sales at which revenue exactly covers costs. Below it you make a loss, above it a profit. It is one of the simplest and most useful figures in business planning.
The idea behind the calculation
Costs come in two kinds. Fixed costs do not depend on how much you sell: rent, salaries, insurance, software subscriptions. Variable costs grow with each unit: materials, packaging, payment fees, shipping. Each sale contributes its price minus its variable cost towards paying the fixed costs. This is the contribution per unit. The break-even point is the fixed costs divided by that contribution.
A worked example
Suppose monthly fixed costs are 3,000, the selling price is 50 and the variable cost is 30. Each sale contributes 20 towards the fixed costs, so you need 3,000 ÷ 20 = 150 units a month to break even, which is revenue of 7,500. The 151st unit is the first one that produces profit. Because you cannot sell a fraction of a unit, the result is rounded up.
Targets and forecasts
Enter a profit target to find how many units it takes: the fixed costs plus the profit, divided by the contribution. Enter an expected number of sales to see whether it gives a profit or a loss and by how much. Together they let you test plans quickly: what if I raise the price by 5, or cut the variable cost by 2? Change the field and see the new break-even point.
What it tells you about your prices
The contribution shown as a percentage of the price tells you how much of each sale is left to cover fixed costs. A low contribution means you need a lot of volume; a high one means fewer sales are enough. If the price is not higher than the variable cost, no volume can help, and the tool says so.
What it does not do
It assumes one product with a constant price and constant costs, and no changes in fixed costs as volume grows. Real businesses have several products, discounts, step costs and taxes. Use it for a first estimate, not as a financial plan. Fixed costs must be for the same period as the units you are considering.
Frequently asked questions
How do I calculate the break-even point?
Divide the fixed costs by the contribution per unit, which is the price minus the variable cost. Fixed costs of 3,000 and a contribution of 20 give 150 units.
What are fixed and variable costs?
Fixed costs do not change with sales, such as rent or salaries. Variable costs rise with each unit sold, such as materials or shipping.
What if my price is lower than my variable cost?
Then each sale loses money and there is no break-even point. Raise the price or reduce the variable cost.
How many units do I need for a target profit?
Add the profit to the fixed costs and divide by the contribution per unit. Enter your target in the optional field.
Why is the number of units rounded up?
Because you cannot sell part of a unit. The tool shows the exact figure and the rounded-up number needed to reach at least break-even.
Is my data sent anywhere?
No. The calculation is done in your browser.
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