Break-Even
Calculator
Enter your fixed costs, variable cost per unit, and selling price to find exactly how many units you need to sell — and how much revenue you need to generate — before you start making a profit.
| Units Sold | Revenue | Variable Costs | Total Costs | Profit / Loss |
|---|
What is break-even analysis?
Break-even analysis identifies the exact sales volume where your total revenue equals your total costs — profit is zero. Below that point you're losing money; above it you're profitable. It's the most fundamental financial planning tool for any business selling a product or service.
What is contribution margin?
Contribution margin (CM) = Selling Price − Variable Cost per Unit. It's the amount each unit "contributes" toward covering fixed costs. Once fixed costs are fully covered, every additional unit sold generates CM as pure profit. A higher CM ratio means you break even faster.
How to lower your break-even point
Three levers: (1) Raise your selling price — the most powerful but market-dependent. (2) Reduce variable costs — better supplier deals, efficient production. (3) Cut fixed costs — smaller premises, fewer subscriptions. Each dollar of fixed cost reduction lowers your break-even by 1 ÷ CM ratio units.
Limitations of break-even analysis
Break-even assumes a constant selling price and variable cost per unit — both often change at scale. It also ignores cash flow timing: you may break even on paper but run out of cash before reaching that volume. Use this alongside cash flow projections and sensitivity analysis for a complete picture.
| Scenario | Price | Var. Cost | Margin % | BE Units | BE Revenue |
|---|---|---|---|---|---|
| Calculate your break-even to see scenarios. | |||||
Find exactly how many units you need to sell to cover all costs and start making profit.