Break-even Calculator
Find how many units you need to sell, and how much revenue that is, to cover fixed costs — using price, variable cost per unit and contribution margin.
- Break-even revenue
- $40,950.00
- Contribution margin per unit
- $33.00
- Contribution margin
- 44%
Results update as you type. Values are kept in the URL, so you can share or bookmark this exact calculation.
Formula
Contribution margin per unit = Price − Variable cost per unit Break-even units = Fixed costs ÷ Contribution margin per unit Break-even revenue = Break-even units × Price (= Fixed costs ÷ Contribution margin %)
How to read Break-even
The break-even point is where contribution — what is left of each sale after its own variable costs — has paid for all the fixed costs. Below it every month loses money; above it each additional unit's contribution margin drops straight to profit.
The split between fixed and variable is the judgement call. Advertising is the classic ambiguity: a retainer is fixed, per-order spend on performance channels is variable. Put it where it actually behaves, because the answer moves a lot with that choice.
Frequently asked questions
- What is the difference between contribution margin and gross margin?
- Gross margin subtracts only cost of goods. Contribution margin also subtracts every other cost that scales with a sale — shipping, payment fees, packaging, per-order ad spend. Contribution margin is the right one for break-even because it is what actually covers fixed costs.
- How do I handle several products with different prices?
- Use a weighted average price and variable cost based on your sales mix, or run the calculator per product with fixed costs allocated by share of revenue. The single-product version here is exact for one SKU and an approximation for a range.
- Break-even is 240 units and I sell 300. What is my margin of safety?
- (300 − 240) ÷ 300 = 20%. Sales can fall 20% before you start losing money. Track this number monthly; it is a better early warning than profit alone.