Break-even calculator
Units and sales you need to cover fixed costs, plus the volume for a target profit.
- ๐บ๐ธ US federal & state rules
- SBA break-even formula
- See sources
Break-even point
500 units
$25,000.00 in sales
- Break-even sales
- $25,000.00
- Contribution per unit
- $20.00
- Contribution margin
- 40%
This is an example. Enter your numbers above and press the button to see your own result.
Profit at different sales volumes
| 250 units | loss $5,000.00 |
|---|---|
| 375 units | loss $2,500.00 |
| 500 units | $0.00 profit |
| 625 units | $2,500.00 profit |
| 750 units | $5,000.00 profit |
| 1,000 units | $10,000.00 profit |
- Use fixed costs for the same period you want the answer for. Monthly rent and salaries give a monthly break-even point.
- Variable cost is anything that grows with each sale: materials, packaging, shipping, payment and marketplace fees.
Show the math
| Contribution per unit | $50.00 โ $30.00 = $20.00 |
|---|---|
| Break-even units | $10,000.00 รท $20.00 = 500, rounded up to 500 |
| Break-even sales | $10,000.00 รท 40% = $25,000.00 |
What to do next
How it works
Each sale brings in the price and costs you the variable cost. The difference is the contribution, and break-even is the number of contributions it takes to cover your fixed costs. Partial units round up, since you cannot sell two-thirds of a product.
Add a target profit to see how many units it takes to cover fixed costs and earn that amount on top.
Things to keep in mind
Pick one period and stick to it. Monthly fixed costs give you units per month. A one-time startup cost is better spread over the months you expect to recover it.
The model assumes a fixed price and fixed unit cost. Discounts, volume pricing or a jump in fixed costs (a second location, a new hire) change the answer.
Sources
Rules applied as of 2026-10-19. See the sources below for details.
Frequently asked questions
How do I calculate the break-even point?
Divide fixed costs by the price minus the variable cost per unit. With $10,000 in fixed costs, a $50 price and $30 in variable costs, you need 500 units.
What is contribution margin?
It is what each sale leaves after its own variable costs, available to cover fixed costs. In the example, $20 of every $50 sale, or 40%.
How do I find break-even sales in dollars?
Divide fixed costs by the contribution margin ratio. $10,000 divided by 40% is $25,000 in sales.
How can I lower my break-even point?
Raise the price, cut the variable cost per unit or cut fixed costs. Raising the price from $50 to $55 in the example drops break-even from 500 units to 400.