Break-Even Calculator
Find out exactly how many units you need to sell — and how much revenue you need — before your business starts making a profit.
Figures are shown in the currency you select. Currency is a display setting only — no exchange-rate conversion is applied.
What your result means
This tool gives you an instant, accurate break-even calculator so you can make pricing and planning decisions with real numbers instead of guesswork. Adjust any input and recalculate to explore different scenarios before you commit.
Formula
Break-Even Units = Fixed Costs ÷ Contribution per Unit
Break-Even Revenue = Break-Even Units × Selling Price
Worked example
A small workshop has $5,000 in fixed monthly costs (rent, salaries). Each product sells for $50 and costs $30 in materials and labour to make.
Break-Even Units = $5,000 ÷ $20 = 250 units
Break-Even Revenue = 250 × $50 = $12,500
Common mistakes
- Leaving out fixed costs that don't feel 'operational', like insurance or loan repayments.
- Using an average variable cost that doesn't reflect real per-unit material and labour cost.
- Forgetting that break-even changes any time price, volume or costs change — recalculate regularly.
Frequently asked questions
What counts as a fixed cost vs a variable cost?
Fixed costs stay roughly the same regardless of sales volume (rent, salaries, insurance). Variable costs scale directly with each unit sold (materials, packaging, sales commission, payment processing fees).
What if my contribution per unit is negative?
That means you're selling below your variable cost per unit — you lose more money with every sale. You cannot break even until you raise price or reduce variable cost.
Does break-even include a profit target?
No — this is the point where profit is exactly zero. To sell enough for a specific profit target, add your desired profit to fixed costs before dividing by contribution per unit.