Break-Even Calculator

Use this calculator to estimate how many units you need to sell before your business becomes profitable.

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What this calculator tells you

This tool calculates:

• The number of units you need to sell to cover your costs
• The revenue required to break even
• Your contribution margin per unit
• How much profit each additional sale generates

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How to interpret your result

Your break-even point tells you the minimum sales volume required before you start making a profit.

• If your break-even number is low, your business can become profitable quickly
• If it is high, you will need strong demand or improved margins

The most important question is:

Can you realistically sell this number of units?

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Example

If:

• Fixed costs = 10,000
• Selling price = 100
• Variable cost = 60

Then:

• Contribution per unit = 40
• Break-even = 250 units

Once you sell more than 250 units:

• Every additional sale generates 40 profit

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How to reduce your break-even point

There are only three ways to lower your break-even:

1. Increase your price

Even small price increases have a large impact.

2. Reduce variable costs

Lower production, shipping, or supplier costs.

3. Reduce fixed costs

Cut overhead like rent, software, or staffing.

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What is a good break-even point?

There is no universal number.

A “good” break-even point is:

• achievable within your expected sales volume
• realistic based on your market demand
• aligned with your growth timeline

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Break-even for ecommerce businesses

For ecommerce:

• Include shipping, transaction fees, and returns in variable costs
• Factor in ad spend when calculating realistic margins
• Test different pricing scenarios to find a sustainable model

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Break-even for service businesses

If you sell services:

• Use revenue-based break-even instead of units
• Focus on billable hours or contracts
• Consider capacity limits when setting targets

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Common mistakes

• Underestimating variable costs
• Ignoring platform or payment fees
• Using unrealistic pricing assumptions
• Forgetting fixed costs like subscriptions or tools

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Related tools

• Profit Margin Calculator
• Revenue Calculator
• Product Price Calculator
• Contribution Margin Calculator

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FAQ

What happens after break-even?

Every unit sold after break-even contributes directly to profit.

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Why is break-even important?

It shows whether your pricing and cost structure are viable before you invest heavily.

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Can break-even change?

Yes. Any change in price, cost, or overhead will shift your break-even point.