Free Break-Even Calculator
Calculate how many units you need to sell to cover your costs. Set sales targets and plan for profit.
Rent, salaries, insurance, etc.
Materials, shipping, commissions per unit
How many units to reach a specific profit goal
Enter values to see results
Break-even point is when your total revenue equals your total costs — you're not making a profit, but you're not losing money either.
Understanding your break-even point helps you:
- Set realistic sales targets
- Price your products correctly
- Understand how costs affect profitability
- Make informed business decisions
Fixed Costs
Costs that stay the same regardless of sales volume (rent, salaries, insurance).
Variable Costs
Costs that change with each unit sold (materials, shipping, commissions).
Break-Even Formula
Units = Fixed Costs / (Price - Variable Cost)Contribution Margin
Margin = Selling Price - Variable CostFrequently Asked Questions
The break-even point is when your total revenue equals your total costs. At this point, you're not making a profit but you're not losing money either. Every sale after the break-even point generates profit.
Break-even units = Fixed Costs ÷ (Selling Price - Variable Cost Per Unit). For example, if your fixed costs are €10,000, selling price is €50, and variable cost is €25, you need to sell 400 units: €10,000 ÷ (€50 - €25) = 400.
Fixed costs stay the same regardless of how many units you sell (rent, salaries, insurance). Variable costs change with each unit sold (materials, shipping, sales commissions). Understanding this difference is key to accurate break-even analysis.
Contribution margin is the amount each unit sale contributes toward covering fixed costs and generating profit. It's calculated as: Selling Price - Variable Cost Per Unit. A higher contribution margin means you break even faster.
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