Break-Even Calculator
Your break-even point is the number of units you need to sell before you start making a profit. Enter your costs and price below to find out how many sales it takes to cover everything.
Enter your numbers to see your break-even point
How break-even is calculated
Break-even units equal your fixed costs divided by your contribution margin per unit. Contribution margin is your selling price minus the variable cost of producing one unit. If your fixed costs are $10,000 a month, you sell at $50, and each unit costs $20 to make, your contribution margin is $30 — so you break even at about 334 units a month.
Fixed costs vs. variable costs
Fixed costs stay the same no matter how much you sell — rent, salaries, software, insurance. Variable costs rise with each sale — materials, packaging, payment fees, shipping. Sorting your expenses into these two buckets is the hardest part of the calculation, and the most useful, because it shows you which costs you can grow into and which you carry from day one.
Why break-even matters before you launch
The break-even number turns a vague hope into a concrete sales target. If breaking even requires more customers than your market realistically contains, the idea needs a higher price, lower costs, or a different model before you commit money to it.
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