Break-even point calculator
Find the minimum sales volume needed to cover your costs, see how your contribution margin compares to industry norms, and model profit at different volume levels.
Break-even calculator
Cost & price inputs
Rent, salaries, subscriptions — costs regardless of units sold
Materials, shipping, payment fees — per sale
Break-even point
Units / month
Revenue / month
Profit at different volumes
Sensitivity
How this tool works
Contribution margin per unit = price − variable cost. Break-even units = fixed costs ÷ contribution margin per unit. Break-even revenue = break-even units × price. The volume table computes profit at each level as: (units × contribution margin) − fixed costs. Sensitivity shows how much the break-even shifts if you raise or lower your price by 10%.
About this tool
Enter your monthly fixed costs, variable cost per unit, and selling price to calculate your break-even point in units and revenue. The contribution margin shows how much each sale contributes to covering fixed costs. A volume table shows profit and loss at 50%, 75%, 100%, 125%, and 150% of break-even volume.
Frequently asked questions
What is a contribution margin?
Contribution margin per unit is the selling price minus the variable cost per unit — the amount each sale "contributes" to covering your fixed costs. Once total contribution covers all fixed costs, every additional sale is pure profit. Contribution margin percentage = contribution / price × 100.
What counts as a fixed cost vs variable cost?
Fixed costs stay constant regardless of how many units you sell: rent, salaries, software subscriptions, insurance. Variable costs scale with each unit: materials, shipping, payment processing fees, packaging, production labour. Some costs are semi-variable (utilities, contractor hours) — split them as best you can or include them in fixed costs for a conservative estimate.
What if I sell multiple products?
Run this calculator for your best-selling or most representative product. For multi-product businesses, use the weighted average contribution margin across your product mix — or run the calculator separately per product line and sum the results.
Does this account for tax?
No — this is a pre-tax break-even. For a post-tax view, reduce your selling price by your effective tax rate on net profit, or gross up your fixed costs to include estimated tax liability.