Break-Even Calculator
Determine the exact number of units and total sales revenue needed to cover all fixed and variable business costs.
GetCalcu Methodology & Editorial Standards
Every calculation formula on GetCalcu is peer-reviewed against official industry standards (CFPB, IRS Title 26, NIST, ISO 80000, and CDC guidelines).
How to Perform a Break-Even Analysis
A break-even analysis identifies the exact volume of unit sales needed so total revenues equal total costs, resulting in zero net profit or loss.
Fixed vs Variable Costs
Fixed costs remain constant regardless of sales volume (rent, salaries, subscriptions). Variable costs scale directly with unit volume (raw materials, production, shipping, merchant processing).
Contribution Margin
Contribution margin is Selling Price minus Variable Cost. This is the dollar amount from every sale that directly funds fixed overhead and generates net profit.
How to Use the Break-Even Calculator
- Step 1: Enter total monthly fixed overhead costs.
- Step 2: Enter the selling price and variable cost per unit.
- Step 3: Optionally set a target monthly profit goal.
- Step 4: View break-even volume, revenue, and sensitivity tables.
Real-World Worked Examples
Retail Boutique
Input: Fixed: $6,000, Price: $50, Variable: $20
Result: Break-even: 200 units ($10,000 revenue)
SaaS App
Input: Fixed: $15,000, Price: $30/mo, Variable: $3/mo
Result: Break-even: 556 subscribers ($16,680/mo revenue)
Frequently Asked Questions
What happens if fixed costs increase?
When fixed costs rise, your break-even point increases, meaning you must sell more units or raise prices to avoid operating at a loss.
How can I lower my break-even point?
You can lower your break-even point by increasing unit selling price, negotiating lower variable material costs, or reducing fixed overhead.