Break-Even Calculator
How many units do you need to sell to break even? This calculator tells you the exact sales volume needed to cover all fixed and variable costs — so you know if your business idea is viable.
Break Even Point Calculator
Find out when your business becomes profitable
Rent, salaries, software, insurance — costs that don't change with sales
You need to sell 167 units at $50 each (or generate $8,350 in revenue) per month just to cover your costs.
This break even analysis assumes a single product/service at a constant price. For multi-product businesses, calculate weighted average contribution margin. Fixed costs should include all recurring expenses but not one time costs.
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Frequently Asked Questions
How do I calculate my break-even point?+
Break-even point (units) = Fixed costs ÷ (Price per unit − Variable cost per unit). The denominator is your contribution margin. If fixed costs are $50,000, price is $100, and variable cost is $40, you need 834 units to break even.
What is the difference between fixed and variable costs?+
Fixed costs stay the same regardless of sales: rent, salaries, insurance, loan payments. Variable costs change with each unit sold: materials, shipping, packaging, transaction fees. Knowing this split is essential for pricing, forecasting, and break-even analysis.
How long do most startups take to break even?+
Most small businesses take 18-36 months to break even. Service businesses break even faster (6-12 months) because they have lower startup costs. Product businesses take longer due to inventory, equipment, and marketing costs. Plan for at least 12 months of losses.
How do I calculate my break-even point?
Break-even point (units) = Fixed costs ÷ (Price per unit − Variable cost per unit). The denominator is your contribution margin. If fixed costs are $50,000, price is $100, and variable cost is $40, you need 834 units to break even.