Break-Even Calculator
Work out how many units you have to sell before the money coming in covers the money going out — and the revenue that gets you there.
How it works
Every sale chips away at your fixed costs by the amount left after covering its own variable cost. Sell at $40 with $25 of variable cost and each unit contributes $15. That $15 is the lever the whole calculation turns on.
Divide your fixed costs by that per-unit margin and you get the break-even count. With $12,000 in fixed costs and $15 per unit, you need 800 units before you've paid off the overhead and start keeping profit.
If your price doesn't clear the variable cost, there's no break-even at all — every sale digs the hole deeper, so the result shows a dash. Raise the price above the variable cost and a real number appears.
Frequently asked questions
How do I calculate the break-even point?
Divide your fixed costs by the contribution margin, which is the price per unit minus the variable cost per unit. Fixed costs of $10,000 and a $20 margin means 500 units to break even.
What counts as a fixed versus variable cost?
Fixed costs stay put no matter how much you sell — rent, salaries, insurance. Variable costs rise with each unit, like materials, packaging, and shipping. Sort them correctly or the break-even number will be off.
Why do I get a dash instead of a number?
Your price isn't above your variable cost, so no sale ever contributes toward the fixed costs. When each unit loses money, there's mathematically no point where you break even. Lift the price and the result returns.