Break-Even Calculator
See how many sales you need before a product, shop or side project stops losing money.
Quick answer
Break-even units = fixed costs ÷ (price − variable cost per unit). With $5,000 a month in fixed costs and $25 of profit per unit, you need 200 sales a month to break even. Get the per-unit profit from the profit margin calculator.
- Free
- No sign-up
- Business
- Updated October 2026
Break-even units
334
Exact: 333.33 units
- Break-even revenue
- $8,350.00
- Contribution margin per unit
- $15.00
- Contribution margin ratio
- 60%
Show the working
- Units = $5,000.00 ÷ ($25.00 − $10.00) = 333.33
About the Break-Even calculator
Your break-even point is the sales volume where total revenue exactly covers total costs. Below it you are losing money; every unit above it adds profit equal to its contribution margin.
The analysis is only as good as the split between fixed and variable costs. Fixed costs stay the same whether you sell one unit or a thousand (rent, software, salaries). Variable costs are paid per unit (materials, packaging, shipping, payment fees).
How to use it
- Enter fixed costs for the period you care about — usually a month.
- Enter the selling price per unit.
- Enter the variable cost per unit.
- The calculator rounds break-even units up, because you cannot sell part of a unit.
The formula
Break-even units = Fixed costs ÷ (Price − Variable cost)
- Price − Variable cost is the contribution margin: what each sale contributes towards fixed costs.
- Break-even revenue = Break-even units × Price.
Worked example
A candle business
- Fixed costs: $5,000 per month. Price: $25. Variable cost: $10.
- Contribution margin: $25 − $10 = $15.
- $5,000 ÷ $15 = 333.3 → 334 candles per month to break even.
Frequently asked questions
What if my price is lower than my variable cost?
Then each sale loses money and there is no break-even point — selling more makes the loss bigger. Raise the price or cut per-unit costs first.
How can I lower my break-even point?
Raise prices, reduce variable costs (better supplier terms, cheaper shipping), or cut fixed costs. A higher contribution margin has the biggest effect.
Should I include my own salary?
If you want to know when the business pays you as well as its bills, yes — add your target pay to fixed costs.
Results are estimates for planning — check critical figures with a professional or the official source.
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