Break-even point calculator
Enter your monthly fixed costs and the price and variable cost of one unit to see how many you need to sell before you make a profit.
Your numbers
Rent, salaries, insurance.
What the customer pays.
Goods, fees, packaging.
Result
Enter your numbers and the result appears here.
How this is calculated
- Contribution margin is price minus variable cost — what each sale contributes towards fixed costs.
- Break-even quantity is fixed costs divided by contribution margin.
- Break-even revenue is that quantity multiplied by the price.
- The contribution ratio shows how much of every 100 in revenue goes towards covering fixed costs.
- If the price is at or below the variable cost, no volume will reach break-even.
Formula
- Contribution margin
contribution = price - variable cost- Break-even units
units = fixed costs / contribution- Break-even revenue
revenue = units x price- Contribution ratio
ratio (%) = contribution / price x 100
Worked example
Fixed costs 3,000 a month, price 15.00 per unit, variable cost 9.00 per unit.
- Contribution: 15.00 - 9.00 = 6.00
- Break-even units: 3,000 / 6.00 = 500
- Break-even revenue: 500 x 15.00 = 7,500
You need 500 sales a month — about 17 a day — before the business turns a profit. After that, every unit adds 6.00 of profit.
Things to watch for
- Fixed costs are the ones that do not move with sales: rent, salaried staff, insurance, depreciation.
- Variable costs move with each sale: goods, packaging, payment fees, shipping.
- Costs such as hourly staff sit between the two. Decide which side they belong on and stay consistent.
- Selling several products? Use a weighted average price and variable cost for an approximate figure.
- Taxes are not included in this calculation.
Frequently asked questions
How do I tell fixed from variable costs?
If the cost still appears when you sell nothing, it is fixed. If it grows with each sale, it is variable. Rent and salaries are fixed; goods, fees and packaging are variable.
Why does contribution margin matter so much?
Each sale contributes that amount towards fixed costs. Once the fixed costs are covered, the same contribution becomes pure profit, so it drives everything above break-even.
What if I sell many different products?
Use a weighted average, dominated by your best sellers. The result is an approximation but it is usually close enough to plan with.
How can I lower the break-even point?
Cut fixed costs or raise the contribution margin — a higher price or a lower variable cost. The target price and margin calculators help you test both.
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Last reviewed: August 25, 2026
Results are for guidance only. Actual bills, taxes and pay depend on your contract and the official rules that apply to you.