Break-Even Calculator
Find how many units you must sell to cover fixed and variable costs, then compare that threshold with your expected sales and profit.
Costs, price and sales
Use costs from the same period. Your entries stay in this browser.
Break-even and profit results
How the break-even point is calculated
Contribution margin per unit is selling price − variable cost per unit. Break-even units equal fixed costs ÷ contribution margin per unit, rounded up to the next whole unit so the result fully covers costs.
Expected profit equals expected units multiplied by contribution margin, minus fixed costs. Margin of safety shows how far expected sales are above or below the exact break-even point.
Worked break-even example
A product sold for $50 with a $20 variable cost has a $30 contribution margin per unit. With $6,000 in fixed costs, the business must sell 200 units to break even. Selling 250 units produces an estimated $1,500 profit before any costs that were left out of the inputs.
Why break-even revenue can mislead
The result assumes the selling price and variable cost stay stable at every volume. Discounts, shipping bands, overtime, refunds and marketplace fees can change the contribution margin. Recalculate when the sales mix or cost structure changes.
Use margin of safety as an early warning
A positive margin of safety shows how much expected volume can fall before losses begin. A narrow margin means a small demand or cost change may erase profit. Run conservative, expected and optimistic scenarios instead of relying on one forecast.
Classify costs consistently. Rent and recurring salaries are often fixed for a period, while materials, packaging and transaction fees may change with each unit. This tool is a planning estimate, not accounting, tax or financial advice.