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Break-Even Calculator
Enter your fixed costs, your price and what each unit costs to make or buy. You get the number of sales at which you stop losing money.
Example
With $5,000 of fixed costs, a price of $50 and a variable cost of $20, each sale contributes $30. You break even at 167 units, or $8,350 of sales.
How the break-even calculator works
Each sale contributes its price minus its variable cost towards your fixed costs. The break-even point is where those contributions add up to the fixed costs: units = fixed costs / (price − variable cost).
Fixed costs stay the same whatever you sell, such as rent, salaries and software. Variable costs rise with each unit, such as materials, packaging and payment fees.
On the chart, the break-even point is where the revenue line crosses the cost line. Every unit sold after that point is profit.
Common questions
How can I lower my break-even point?
Raise the price, reduce the variable cost per unit or cut fixed costs. A price increase works on every unit, so it often has the largest effect, as long as sales hold up.
What if I sell several products?
Use an average price and an average variable cost weighted by how much of each product you sell, or run the calculation for each product with its share of the fixed costs.
Does break-even include my own salary?
Only if you add it. Include what you need to pay yourself in fixed costs to see the sales required for the business to support you.