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Break-Even Calculator

Determine the exact number of units and total sales revenue needed to cover all fixed and variable business costs.

Quick Scenarios
Non-variable expenses: rent, salaries, insurance, software licenses.
Average price charged per unit or subscription.
Direct per-unit costs: materials, labor, shipping, merchant fees.
Desired profit above break-even.

You need to sell 200.00 units ($12,000.00) to break even.

Each unit sold contributes $40.00 (66.67%) toward fixed expenses. To hit your target profit of $4,000.00, sell 300.00 units.

Break-Even Units 200.00 units
Break-Even Sales Revenue $12,000.00
Contribution Margin / Unit $40.00
Contribution Margin Ratio 66.67%
Units to Target Profit 300.00 units
Revenue to Target Profit $18,000.00

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).

Reviewed by: GetCalcu Editorial & Mathematical Board
Last Verified: September 2026
Accuracy Policy: In-browser deterministic computation
Feedback: Report an issue

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

  1. Step 1: Enter total monthly fixed overhead costs.
  2. Step 2: Enter the selling price and variable cost per unit.
  3. Step 3: Optionally set a target monthly profit goal.
  4. Step 4: View break-even volume, revenue, and sensitivity tables.
Formula: Break-Even Units = Fixed Costs ÷ (Price - Variable Cost) | Break-Even Revenue = Break-Even Units × Price

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.