Break-Even Calculator — Find Your Break-Even Point
Find out how many units you need to sell to cover your costs. Visualize revenue vs expenses and understand your contribution margin. All calculations happen locally — nothing leaves your browser.
How to Use the Break-Even Calculator
- Enter fixed costs — rent, salaries, insurance, subscriptions (costs that don't change with volume).
- Set variable cost per unit — materials, packaging, direct labor per product.
- Set price per unit — what you charge customers.
- Review the chart — see where revenue crosses total costs.
Understanding Break-Even Analysis
Break-even point = Fixed Costs ÷ (Price per Unit − Variable Cost per Unit). The difference between price and variable cost is your contribution margin — each unit contributes this amount toward covering fixed costs.
Once you pass the break-even point, every additional unit sold is pure profit (at the contribution margin rate). This is why understanding your break-even is critical for pricing decisions and business planning.
Frequently Asked Questions
Fixed costs are expenses that remain constant regardless of how many units you produce or sell: rent, salaries, insurance, software subscriptions, loan payments, and depreciation. If it shows up on your bill whether you sell 1 unit or 10,000, it's fixed.
Three levers: (1) Increase price, (2) Reduce variable costs per unit, (3) Reduce fixed costs. Even small improvements compound — a $2 price increase can reduce break-even units by 10-20%.
Divide your total fixed costs by the price per unit minus the variable cost per unit. The formula is: Break-Even Units = Fixed Costs ÷ (Selling Price − Variable Cost). This tells you how many units you need to sell before you start making a profit. Enter your costs in this calculator to see your break-even point instantly.
Use Cases
Startup Launch Planning
Calculate how many units you need to sell before your startup becomes profitable and starts generating positive cash flow.
Freelancer Pricing
Determine the minimum pricing strategy for freelance services to cover expenses and achieve desired profit margins.
Product Cost Analysis
Analyze product costs and pricing to find the break-even point for new product launches and manufacturing decisions.
Investment Payback
Calculate the payback period for business investments to understand how long it takes to recoup your initial capital.
Business Plan Projections
Create financial projections for business plans, investor presentations, and loan applications with break-even analysis.