⚖️ Planning
Break-Even
Calculator
Know exactly how many sales you need to cover costs before you open. The most important number in your business plan.
📌 Fixed Costs (Monthly)
Fixed costs stay the same regardless of sales volume — rent, salaries, insurance, subscriptions.
📦 Per-Unit Economics
Variable costs scale with each sale — materials, commissions, payment processing, shipping.
Monthly Break-Even Point
0 units
$0 in revenue needed to cover all costs
Total Fixed Costs
$0
Monthly overhead
Contribution Margin
$0
Per unit sold
Contribution Margin %
0%
Margin per dollar of revenue
Break-Even Revenue
$0
Monthly revenue needed
Profit at Different Sales Volumes
50% of break-even—
Break-even (100%)$0 profit
125% of break-even—
150% of break-even—
200% of break-even—
Track every dollar automatically
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Frequently Asked Questions
What is the contribution margin? ▾
The contribution margin is the selling price minus variable costs per unit — the amount each sale contributes toward covering fixed costs and generating profit. For example, if you sell a product for $85 and it costs $35 to produce and deliver, the contribution margin is $50. Once your total contribution margin equals your total fixed costs, you've broken even. Every sale above break-even adds the full contribution margin directly to profit.
How do I lower my break-even point? ▾
Three levers: (1) Reduce fixed costs — renegotiate rent, cut subscriptions, delay hiring; (2) Reduce variable costs — find cheaper suppliers, improve production efficiency, reduce waste; (3) Raise prices — even a 10% price increase significantly lowers break-even if demand is relatively inelastic. The combination of modest price increases and cost reductions often produces dramatic break-even improvements.
Why does my break-even matter for investors? ▾
Investors and lenders want to know how much revenue is needed before the business stops burning cash. A lower break-even point means lower risk and faster path to profitability. It also shows you understand your unit economics — a key signal of business sophistication. Most pitch decks include a break-even analysis for this reason.