Calculate your break-even point in units sold and revenue. See exactly how many sales you need to cover all fixed costs and start making profit.
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How This Works
Break-even units = fixed costs ÷ contribution per unit. Contribution = selling price − variable cost per unit. This is how much each unit sold contributes toward covering fixed costs. Once fixed costs are fully covered, each additional unit sold generates pure profit at the contribution margin rate.
Fixed costs stay the same regardless of how much you sell — rent, insurance, software subscriptions, loan repayments. Variable costs change directly with sales volume — raw materials, packaging, transaction fees, commission. Some costs are semi-variable (e.g. electricity — fixed base cost plus usage). Accurately categorising costs is critical for break-even analysis — mixing up fixed and variable will give misleading results.