Break-even calculator
Explore contribution, whole-unit break-even and profit across sales scenarios.
How it works & useful details
Formula & assumptions
Contribution per unit = unit price − variable cost. Break-even units = fixed costs ÷ contribution, rounded up to whole units. Target units include your desired profit in the numerator. Prices and unit costs stay constant; all costs must refer to the same period. With positive fixed costs and nonpositive contribution, break-even is unreachable. Zero fixed costs break even at zero sales, even when later sales lose money. Scenario units: 0–1,000,000.
Local planning workspace
These tools are planning aids, not financial, tax or legal advice. Values stay in this page. Nothing is sent, saved to your records or fetched from external services.
USD, EUR, GBP, CAD and AUD are labels with two decimal places. There is no currency conversion. Enter decimals with a dot and no commas. Money inputs are limited to 1 billion units; calculated amounts to 10 trillion. Rates are supplied by you, with up to four decimal places.
About this tool
Break-even calculator shows how many units you need to sell before a product covers its own costs. Enter a unit price, variable cost per unit, and fixed costs to see contribution per unit, the whole-unit break-even point, and the profit or loss at a chosen sales volume.
The calculator is a planning aid that runs entirely in your browser. It uses the numbers you supply and does not fetch prices, costs, or exchange rates from anywhere.
How to use it
- Enter the selling price per unit and the variable cost per unit.
- Add your fixed costs for the period you are planning.
- Review contribution per unit and the whole-unit break-even quantity.
- Adjust the sales scenario to see projected profit above or below break-even.
Worked example
A small product line has fixed costs of 3,000 per month. Each unit sells for 30.00 and costs 12.00 in materials and shipping.
- Contribution per unit: 30.00 − 12.00 = 18.00. That is what each sale contributes toward the fixed costs.
- Break-even units: 3,000 ÷ 18 = 166.67, rounded up to 167 units. You cannot sell two thirds of a unit, so 166 sales still leave a small loss.
- Units for a 1,000 profit target: (3,000 + 1,000) ÷ 18 = 222.2, rounded up to 223 units.
- Scenario at 200 units: revenue 6,000.00, total costs 5,400.00, profit 600.00.
Getting reliable inputs
Break-even analysis is only as good as the split between fixed and variable costs. Fixed costs stay the same whatever you sell in the period: rent, software subscriptions, insurance, salaries. Variable costs rise with each unit: materials, packaging, payment processing fees, and shipping you pay for.
Keep every figure in the same period. Monthly fixed costs give a monthly break-even volume. If the contribution per unit is zero or negative, no sales volume covers the fixed costs, and the calculator says so instead of printing a meaningless number. In that case the price or the variable costs have to change first.
Frequently asked questions
Why is the break-even quantity rounded up?
You cannot sell a fraction of a unit, so the result is rounded to the next whole unit to reach or pass the break-even point.
Which costs belong in fixed versus variable?
Variable costs change with each unit (materials, per-sale fees); fixed costs stay the same for the period (rent, subscriptions).
Does this replace accounting advice?
No. It is a simple planning model with the values you enter, not financial advice, and it does not account for taxes or financing.
Can I use it for services instead of products?
Yes. Treat one billable hour, session, or project as a unit. The variable cost is whatever each delivery costs you directly, such as subcontractor time or materials.