Break-even calculator

Fixed costs per month (rent, salaries, software)

Currency

Selling price per unit

Variable cost per unit (materials, fees, shipping)

Break-even units per month

100

Break-even revenue per month

$5,000

Contribution per unit

$30.00

Contribution margin

60%

Revenue and total cost by units sold

RevenueTotal cost

A planning estimate. Real costs change with volume.

Why the break-even point matters

Before you set prices, sign a lease or hire someone, it helps to know how many sales the new cost needs. Break-even turns a vague worry into one number you can compare with what you sell today.

It also shows which change helps most. A small price rise usually moves break-even further than the same cut in costs, because the whole rise goes straight into the contribution per unit.

How it works

Enter your fixed costs per month: the costs you pay whether you sell anything or not, such as rent, salaries, insurance and software.

Enter the selling price of one unit (a product, a job, an hour or a booking).

Enter the variable cost of one unit: materials, card fees, packaging, shipping or anything else that grows with each sale.

Read the break-even units and revenue. The chart shows revenue and total cost crossing at the break-even point.

Tips

Break-even units = fixed costs / (price - variable cost). The part in brackets is the contribution per unit.

If the price is not higher than the variable cost, every sale loses money and there is no break-even point. Raise the price or cut the unit cost first.

Run it three times: with today's numbers, with a 10% higher price and with 10% lower variable costs. It shows which lever matters most for you.

For a service business, a unit can be an hour or a job. Use the average job price and the average materials per job.

Include your own pay in fixed costs if you want to know when the business supports you, not just when it stops losing money.

Frequently asked questions

How do you calculate the break-even point?

Divide your fixed costs by the contribution per unit, which is the selling price minus the variable cost per unit. For example, with $3,000 of fixed costs, a $50 price and $20 of variable cost, each sale contributes $30, so you need 100 sales to break even.

How do I work out break-even revenue?

Multiply the break-even units by the selling price. You can also divide fixed costs by the contribution margin ratio (contribution per unit divided by price). In the example above, 100 units x $50 = $5,000 a month.

What is the contribution margin?

The share of each sale left over to pay fixed costs and then profit. In the example, $30 of every $50 sale, or 60%.

What counts as a fixed cost?

A cost that stays the same whatever you sell in the month: rent, salaries, insurance, loan repayments, software and your website. Costs that rise with each sale are variable.

Is this break-even calculator free?

Yes. There is no signup and nothing is uploaded. It is a planning estimate: real costs change as volume grows.

Break-Even Calculator

Find out how many units you need to sell each month before you stop losing money, and what that is in revenue. Enter your fixed costs, your selling price and your variable cost per unit; the result and the chart update as you type. Everything runs in your browser. Nothing you type or upload is sent to We.Inc or anyone else.

How it works

Enter your fixed costs per month: the costs you pay whether you sell anything or not, such as rent, salaries, insurance and software.
Enter the selling price of one unit (a product, a job, an hour or a booking).
Enter the variable cost of one unit: materials, card fees, packaging, shipping or anything else that grows with each sale.
Read the break-even units and revenue. The chart shows revenue and total cost crossing at the break-even point.

Why the break-even point matters

Before you set prices, sign a lease or hire someone, it helps to know how many sales the new cost needs. Break-even turns a vague worry into one number you can compare with what you sell today.

It also shows which change helps most. A small price rise usually moves break-even further than the same cut in costs, because the whole rise goes straight into the contribution per unit.

Limits of a simple break-even analysis

The model assumes one price, one variable cost and fixed costs that do not move. Real businesses have discounts, several products and costs that step up (a second van, a bigger unit). Use the result as a planning guide, and recalculate when your numbers change.

Tips

Break-even units = fixed costs / (price - variable cost). The part in brackets is the contribution per unit.
If the price is not higher than the variable cost, every sale loses money and there is no break-even point. Raise the price or cut the unit cost first.
Run it three times: with today's numbers, with a 10% higher price and with 10% lower variable costs. It shows which lever matters most for you.
For a service business, a unit can be an hour or a job. Use the average job price and the average materials per job.
Include your own pay in fixed costs if you want to know when the business supports you, not just when it stops losing money.

Frequently asked questions

How do you calculate the break-even point?

How do I work out break-even revenue?

What is the contribution margin?

The share of each sale left over to pay fixed costs and then profit. In the example, $30 of every $50 sale, or 60%.

What counts as a fixed cost?

A cost that stays the same whatever you sell in the month: rent, salaries, insurance, loan repayments, software and your website. Costs that rise with each sale are variable.

Is this break-even calculator free?

Yes. There is no signup and nothing is uploaded. It is a planning estimate: real costs change as volume grows.

Turn this into your website or see the We.Inc website builder. The free plan gives you up to 3 template sites on a we.inc address, with no AI credits and no custom domain. Paid plans are Starter at $20 a month, Pro at $49 and Max at $99. See pricing.