Break-Even Calculator — Units and Revenue You Need to Cover Costs


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Break-Even Calculator

How many units do you need to sell before your business stops losing money? Enter your monthly fixed costs, price per unit, and variable cost per unit to find the exact break-even point — in both units and revenue.

Calculate Your Break-Even Point

Rent, salaries, insurance, software, and other costs that stay the same whether you sell one unit or one thousand.

What a customer pays for one unit, before any discounts you plan to offer.

Materials, packaging, per-unit shipping, and sales fees — the cost that only happens when you sell one more unit.

Optional what-if: how much profit you want after covering every cost. The calculator shows the units that target requires.

Result Amount
Contribution margin per unit
Contribution margin ratio
Break-even units per month
Break-even revenue per month
Units needed for your target profit

How the Break-Even Formula Works

Every unit you sell contributes something toward your fixed costs: the selling price minus the variable cost of making that one unit. That leftover is the contribution margin. Your break-even point is the moment those leftovers have added up to cover your fixed costs exactly — no profit, no loss.

Break-even units = Fixed costs / (Price per unit − Variable cost per unit)
Input Example What it means
Fixed costs $12,000 per month Costs you owe even if you sell nothing that month.
Contribution margin $50 − $30 = $20 per unit The amount from each sale that goes toward fixed costs, then profit.
Break-even units $12,000 / $20 = 600 units Sales needed before the business covers all of its costs.
Break-even revenue 600 × $50 = $30,000 The monthly sales total at exactly zero profit.
Target-profit units ($12,000 + $5,000) / $20 = 850 units Sales needed to cover costs and bank a $5,000 monthly profit.
  • Below break-even, you are subsidizing the business: every month under 600 units in the example above ends in a loss, no matter how busy the work felt.
  • Above break-even, each unit is mostly profit: once fixed costs are covered, each extra unit adds its full $20 contribution margin to profit (before taxes).
  • The margin is the lever: a small price increase or variable-cost cut raises the contribution margin, which lowers the number of units you must sell.
  • Break-even is a monthly moving target: re-run the numbers whenever rent, wages, supplier prices, or your price changes.

Frequently Asked Questions

It is the sales level where your revenue exactly covers all of your costs — fixed and variable. Below it you lose money; above it you make money. In the example on this page, that point is 600 units or $30,000 of revenue per month.

Yes, if you need the business to pay you. Leaving the owner’s salary out makes the break-even point look lower than it really is, because the business still has to produce that income for you to live on. Treat a realistic owner salary as a fixed monthly cost.

Three ways: raise your price, cut variable cost per unit, or cut fixed costs. The first two widen the contribution margin, so each sale covers more of the fixed costs. The third shrinks the total that needs covering. Even a $2 margin improvement can remove dozens of units from the monthly target.

If your price is equal to or lower than your variable cost per unit, every sale contributes zero or loses money, so no number of sales can ever cover fixed costs. You must raise the price or reduce the variable cost before a break-even point exists.
Disclaimer: This calculator is an estimate for planning purposes. It assumes a single product, a constant price, and constant per-unit costs, and it does not include income taxes, loan interest variations, discounts, returns, or seasonal changes in costs. Review your real figures with an accountant before making pricing or hiring decisions.



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