Break-even calculator
How many units do you need to sell to cover your costs? Enter fixed and variable costs and your price — and an optional profit target to see what it takes to clear it.
The math, plainly
Three numbers do all the work.
- Fixed costs. What you pay regardless of volume — rent, salaries, software, equipment that's already bought.
- Variable cost per unit. What it costs to produce, package, and deliver one additional unit. Materials, packaging, per-order shipping, per-unit labor.
- Price per unit. What the customer pays you.
Contribution margin per unit = price − variable cost. That's the slice of each sale that "contributes" to covering fixed costs. Once fixed costs are covered, every additional unit's contribution margin is pure profit.
Break-even units = fixed costs ÷ contribution margin per unit. If your contribution per unit is $18 and you have $5,000 in monthly fixed costs, you need 5000 / 18 = 278 units a month. Anything below that loses money; anything above starts to print.
When break-even doesn't work
If your variable cost ≥ your price, the contribution margin is zero or negative. There is no break-even — every unit you sell deepens the loss. The calculator above flags this case.
Frequently asked
What if my fixed costs change with scale?
Use a step function: model break-even within each stable range. If you'll need to hire someone at 1,000 units / month, model break-even for the current fixed-cost level up to that threshold separately.
Should I include marketing in fixed or variable?
If you're paying a flat ad budget that doesn't scale with units (e.g. brand campaigns), it's fixed. If your acquisition cost scales linearly with units (CAC × units), include CAC in variable cost per unit instead.
Is break-even the same as profitability?
No. Break-even just means revenue equals total cost. Profitability requires consistently exceeding break-even with healthy contribution margin. A business hitting break-even exactly is precariously placed — one bad month and it's in the red.