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Break-Even Calculator

Find out exactly how many units you need to sell or revenue you need to generate to cover your costs.

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How to Use the Break-Even Calculator

  1. 1

    Enter your fixed costs

    Input all fixed costs such as rent, salaries, insurance, and other expenses that remain constant regardless of sales volume.

  2. 2

    Enter the price per unit

    Set the selling price for each unit of your product or service.

  3. 3

    Enter the variable cost per unit

    Input the variable cost associated with producing or delivering each unit, such as materials, shipping, or transaction fees.

  4. 4

    View the break-even point

    Review the number of units you need to sell and the revenue required to cover all costs and reach profitability.

Sources & Verification

SBA Business Guide

Published by ConvertCrunch Editorial Team | Our Methodology

Frequently Asked Questions

What is a break-even analysis?
A break-even analysis determines the point at which total revenue equals total costs, meaning you have zero profit or loss. It tells you the minimum number of units you must sell or the revenue you must generate to cover all fixed and variable costs. This is a critical metric for new businesses, product launches, and pricing decisions. It helps you understand the minimum viable sales volume needed before a venture becomes profitable.
How do I calculate the break-even point?
The break-even point in units equals fixed costs divided by (selling price per unit minus variable cost per unit). The denominator is called the contribution margin per unit. For example, with $10,000 in monthly fixed costs, a $50 selling price, and $30 variable cost, break-even is $10,000 / ($50 - $30) = 500 units. In revenue terms, multiply break-even units by the selling price: 500 times $50 = $25,000 in monthly revenue needed to break even.
What counts as fixed costs versus variable costs?
Fixed costs remain constant regardless of production volume: rent, salaries, insurance, loan payments, software subscriptions, and depreciation. Variable costs change with each unit produced or sold: raw materials, packaging, shipping, sales commissions, and payment processing fees. Some costs are semi-variable (like utilities with a base charge plus usage), in which case split them into their fixed and variable components for an accurate break-even calculation.
How can I lower my break-even point?
You can lower the break-even point three ways. First, reduce fixed costs by negotiating rent, switching to cheaper tools, or operating leaner. Second, reduce variable costs per unit through supplier negotiations, bulk purchasing, or process efficiency. Third, increase your selling price, which raises the contribution margin per unit. Even small improvements in each area compound: a 10% reduction in fixed costs, 5% reduction in variable costs, and 5% price increase can dramatically lower the units needed to break even.

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