Break-even Calculator
How much do you need to sell to cover your costs? Enter your fixed costs, price per unit, and variable cost per unit for the break-even point in units and revenue — plotted on a break-even chart. Add your expected sales for a margin-of-safety verdict, or a target profit for the volume that gets you there. All in your browser.
Break-even is contribution margin doing its job
Every sale throws off a contribution margin — the price minus what that unit costs to make. That margin is the only money available to cover your fixed costs. Break-even is simply the number of units whose combined margins exactly equal your fixed costs. Sell one more and the next margin is pure profit; sell one fewer and you're still in the red.
Margin of safety: the number to watch after break-even
Knowing the break-even point is step one; knowing how far above it you're operating is what tells you how fragile the business is. The margin of safety — expected sales minus break-even, as a share of expected sales — is effectively your tolerance for bad months. A 33% margin of safety means revenue can miss the plan by a third before losses start. Below 10%, normal demand noise is enough to flip you into the red, which is why the calculator flags it.
The two levers that move it
To reach break-even sooner, you can raise the contribution margin (a higher price or a lower variable cost) or lower the fixed costs. Of these, margin usually has the most leverage: a small price increase or cost reduction lowers the break-even point disproportionately, because it changes the margin on every unit. Watch the contribution-margin ratio — it's the clearest signal of how efficiently your sales cover costs.
Related
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FAQ
Is anything I enter sent to a server?
No. The calculator runs entirely in your browser — open DevTools → Network and confirm. Your business numbers never leave the tab.
How is the break-even point calculated?
Break-even units = fixed costs ÷ contribution margin per unit, where contribution margin is price minus variable cost. If your fixed costs are $10,000, you sell at $50, and each unit costs $20 to make, each unit contributes $30, so you break even at 10,000 ÷ 30 ≈ 334 units. Multiply by price for the revenue you need.
What's the difference between fixed and variable costs?
Fixed costs don't change with how much you sell — rent, salaries, software, insurance. Variable costs scale with each unit — materials, packaging, payment fees, shipping. The split matters because only the contribution margin (price minus variable cost) is available to chip away at fixed costs.
What is contribution margin?
The money each sale contributes toward covering fixed costs and, after break-even, profit. It's the price minus the variable cost per unit. The contribution-margin ratio (margin ÷ price) tells you what fraction of each sale is available — a higher ratio means you reach break-even faster and scale more profitably.
Why can't I break even if my price is below my variable cost?
Because every unit you sell loses money before fixed costs even enter the picture — your contribution margin is negative. Selling more makes it worse, not better. The only fixes are raising the price or lowering the per-unit cost until each sale contributes something positive.
What is the margin of safety?
How far your expected sales sit above the break-even point, as a percentage: (expected − break-even) ÷ expected × 100. If you expect to sell 500 units and break even at 334, your margin of safety is about 33% — sales could fall by a third before you start losing money. Under 10% means a routine bad month puts you in the red; 30%+ is a comfortable buffer. Enter your expected monthly sales and the calculator grades it for you, along with the profit those sales would generate.
How do I find the sales needed for a target profit?
Treat the profit like another fixed cost to cover: required units = (fixed costs + target profit) ÷ contribution margin. With $10,000 fixed costs, a $30 contribution margin, and a $5,000 profit goal: (10,000 + 5,000) ÷ 30 = 500 units. Enter a target profit and the calculator returns the units and the revenue they represent.
How do I read the break-even chart?
The horizontal axis is units sold; the vertical axis is dollars. The accent line is revenue (price × units, starting at $0); the gray line is total cost (fixed costs plus variable cost × units, starting at your fixed costs). Where they cross is the break-even point. The shaded wedge left of the crossing is the loss zone (costs above revenue); the wedge to the right is the profit zone — and the gap between the lines at any point is your profit or loss at that volume.