Break-Even Calculator

Starting a small business, a market stall or an online shop? Enter your fixed costs, the price you charge and what each unit costs you, and see how many sales you need before you make a profit. Add a target profit to see the sales you need for it, add your expected sales to see your margin of safety, and check how a price change moves the break-even point.

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Fixed costs

Costs that stay the same however much you sell: rent, salaries, software, loan payments.

Selling price per unit

Variable cost per unit

Costs for each unit sold: materials, packaging, shipping, payment fees, commission.

Target profit

Expected sales (units)

Optional — used for the expected profit and margin of safety.

Break-even sales (units): 1,500
Break-even revenue: 75,000
Contribution margin per unit: 20 (40%)
Units and revenue for the target profit: 2,000 · 100,000
Profit at expected sales: 10,000
Margin of safety: 25%

Break-even point at different prices
Price change	Price	Break-even units
-20%	40	3,000
-10%	45	2,000
0%	50	1,500
+10%	55	1,200
+20%	60	1,000

Break-even units = fixed costs ÷ (price − variable cost per unit), rounded up. Use the same period for everything — for example monthly fixed costs with monthly sales. Taxes are not included.

How to use

Enter your fixed costs for a period, such as a month.
Enter the selling price per unit and the variable cost per unit.
Optionally enter a target profit and your expected sales for the same period.
Read the break-even sales and revenue, and compare prices in the table below.

Options explained

Contribution margin: Price minus variable cost — what each sale contributes towards fixed costs and profit.
Margin of safety: How far expected sales can fall before you start losing money, as a percentage of expected sales.

Formulas and a worked example

contribution margin = price − variable cost
break-even units    = fixed costs ÷ contribution margin
break-even revenue  = break-even units × price
units for a target  = (fixed costs + target profit) ÷ contribution margin
margin of safety    = (expected − break-even units) ÷ expected units

Suppose fixed costs are 12,000 a month, the price is 25 and each unit costs 10 to make. The contribution margin is 15, so you break even at 12,000 ÷ 15 = 800 units, or 20,000 in revenue. To earn 3,000 you need (12,000 + 3,000) ÷ 15 = 1,000 units. If you expect to sell 1,000 units, sales can fall by 20% before you start losing money.

Frequently asked questions

What counts as a fixed cost?

Costs that do not change with sales volume in the period — rent, salaries, subscriptions, insurance, loan payments.

What if my price is lower than my variable cost?

Then each sale loses money and there is no break-even point. Raise the price or cut the cost per unit.

Does it include tax?

No. Enter prices and costs consistently (for example both excluding VAT) and use the same period for fixed costs and sales.

Privacy

This tool runs entirely in your browser. Your files and text are processed on your device and are never uploaded to our servers.