Free tool
Break-even calculator
Enter monthly fixed costs, your average price per unit and the variable cost per unit. We show the break-even point in units and dollars.
- Contribution / unit
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- Break-even units / month
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- Break-even revenue / month
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Using contribution margin
Each unit sold contributes price − variable cost toward covering fixed costs. Once fixed costs are covered, that same contribution drops to the bottom line. If price and variable cost are equal (or variable cost is higher), there is no path to break even without raising price or cutting cost.
Frequently asked questions
What is the break-even point?
The sales level at which total revenue equals total costs — no profit, no loss. Below it you lose money; above it, each additional sale contributes profit.
How is it calculated?
Break-even units = fixed costs ÷ (price per unit − variable cost per unit). The bottom of that fraction is the contribution margin per unit. Multiply units by price for break-even revenue.
What counts as a fixed vs variable cost?
Fixed costs stay the same regardless of sales — rent, salaries, software, insurance. Variable costs scale with each sale — product cost, packaging, payment processing, commissions.
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