Break-Even Calculator
Find the number of units you need to sell before fixed costs are covered.
Quick answer
Break-Even Calculator helps estimate the result from your inputs in the browser. Use the output as a planning number, then compare it with your records, provider terms, or official guidance before making a final decision.
Break-even estimates do not replace detailed cost accounting or pricing strategy.
Calculator
Results update as you type
Break-even units
Expected volume is 16.7% above the modeled break-even point.
Breakdown
Example
A product with $1,000.00 in fixed costs, $8.00 variable cost, and $20.00 selling price breaks even at around 83.33 units.
Formula
The math behind the result
How it works
A clean flow from input to answer
- 1Enter your fixed monthly costs.
- 2Add the variable cost and selling price per unit.
- 3Check the break-even units, revenue, and margin of safety.
FAQ
Common questions
What if selling price is below variable cost?
There is no break-even point in that case because each sale loses money.
Can I use this for services?
Yes. Treat each sale or client engagement as a unit and use the service delivery costs as variable cost.
What is margin of safety?
It measures how far expected sales are above the break-even level.
Is break-even the same as profit?
No. Break-even means zero profit and zero loss, before profit starts accumulating.
Can I change expected units later?
Yes. The calculator uses the expected units input to estimate profit and safety margin.
Use break-even to test the business model
A break-even result is the sales volume where contribution profit has finally repaid fixed costs. For example, a $50 product with $20 of variable cost contributes $30 per sale. With $6,000 of monthly fixed costs, the business needs 200 units and $10,000 of revenue before producing operating profit.
Classify costs before trusting the answer. Rent, core software, and salaried administration usually stay fixed over the modeled range. Materials, card fees, pick-and-pack charges, and sales commissions usually move with each unit. Shipping may be variable, partially recovered from the buyer, or embedded in the price.
Use realistic capacity as the next test. A target of 200 units is not actionable if production can only deliver 140, or if demand has never exceeded 80. The gap identifies whether pricing, contribution cost, fixed overhead, or capacity needs to change before launch.
This model assumes one stable price and variable cost. Discounts, product mixes, returns, spoilage, tax, stepped rent, and new hires can move the real threshold. Recalculate whenever a cost or price changes materially, and compare the estimate with monthly accounting records. Track the date and assumptions beside every saved scenario. Note whether capacity was measured in orders, units, clients, or billable engagements.