Free Break-Even Calculator
Every business needs to know the point where revenue covers costs. Enter your fixed costs, selling price and variable cost per unit to find exactly how many units you must sell to break even — and what each sale beyond that earns.
How to Use the Break-Even Calculator
- Enter your fixed costs (rent, salaries, etc.).
- Enter the price and variable cost per unit.
- Click Calculate Break-Even to see the units and revenue needed to break even.
Features
Computes contribution margin per unit, break-even quantity (rounded up to whole units) and break-even revenue. Built-in validation catches the common mistake of pricing below variable cost.
Benefits & Use Cases
Founders use it to sanity-check pricing before launch, freelancers to set minimum project rates, and event organizers to find the ticket sales needed to cover the venue.
Tips
List every fixed cost honestly — software subscriptions and insurance are easy to forget. Re-run the numbers whenever suppliers raise their prices.
Frequently Asked Questions
What is the break-even point?
The sales level where total revenue exactly equals total costs — sell one more unit and you start making a profit.
What is contribution margin?
Selling price minus variable cost per unit: the amount each sale contributes toward covering fixed costs, and then profit.
What if my price is below variable cost?
Then you lose money on every sale and can never break even — the calculator will warn you to raise the price or cut costs.
Does it include taxes?
No — enter costs after tax, or treat tax as part of your variable costs for a conservative estimate.
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