How to calculate break-even
Your break-even point is the number of sales where total revenue exactly equals total cost — no profit, no loss. The formula is: Break-even units = Fixed costs ÷ (Price − Cost per unit). That denominator is your contribution margin — the profit each sale contributes toward covering your fixed costs.
Why it matters
Before launching a product, opening a shop, or setting a price, break-even tells you the sales target you must hit to survive. If that number looks unrealistic for your market, the fix is one of three levers: raise the price, cut the cost per unit, or lower fixed costs — try changing each and watch the break-even move.
Reaching profit, not just break-even
To hit a profit target, add it to fixed costs: Units = (Fixed costs + Target profit) ÷ margin. Enter a target above to see the sales you'd need to actually take money home.
What if price is below cost per unit?
Then every sale loses money and you can never break even. The calculator warns you — you must price above your unit cost.
Are fixed costs monthly or one-off?
Use the period you want to plan for — monthly is most common. Keep price, unit cost and fixed costs on the same time basis.
What's contribution margin?
The profit per unit (price minus unit cost), often shown as a % of price. A higher margin means fewer sales to break even.