Break-Even Calculator
Calculate how many units you need to sell to break even.
Knowing your break-even point — the sales volume where revenue equals costs — is critical before launching a product or service. This calculator takes your fixed costs, variable cost per unit, and selling price to show exactly how many units you need to sell to start making a profit.
Your result will appear here...
How to Calculate Your Break-Even Point
- Enter your fixed costs — these are expenses that don't change with production volume, such as rent, salaries, and insurance.
- Enter the variable cost per unit — this is the cost to produce or acquire each additional unit, including materials and direct labour.
- Enter the selling price per unit — the price at which you sell each unit to customers.
- Click Calculate — the tool computes the break-even point in units and revenue needed to cover all costs.
Frequently Asked Questions
What is the break-even point? ▼
The break-even point is where total revenue equals total costs — you are neither making a profit nor a loss. It is calculated as: Fixed Costs ÷ (Selling Price per Unit − Variable Cost per Unit). Any sales beyond this point generate profit.
Why is break-even analysis important? ▼
Break-even analysis helps you set minimum sales targets, evaluate pricing strategies, and decide whether a new product or business venture is financially viable. It is essential for business planning, investor pitches, and budgeting.
What are fixed costs vs variable costs? ▼
Fixed costs stay the same regardless of output (rent, insurance, salaries). Variable costs change with each unit produced (raw materials, packaging, shipping per item). Understanding this distinction is key to accurate break-even calculation.
How can I lower my break-even point? ▼
You can lower your break-even point by reducing fixed costs (e.g., cheaper premises), reducing variable costs (e.g., bulk purchasing), or increasing your selling price. Each approach shifts the break-even threshold downward.
Does break-even analysis work for service businesses? ▼
Yes. For services, treat your time as the variable cost and your billable rate as the selling price. Fixed costs include software subscriptions, office space, and marketing. The formula works the same way.
Is my financial data stored anywhere? ▼
No. All calculations run in your browser. Your cost and pricing data is never sent to any server or stored anywhere.