Break-Even Calculator
Determine how many units you need to sell to cover your costs and start making a profit.
(Rent, salaries, utilities, etc.)
(Materials, labor, shipping per item)
How to Use:
- Enter your total fixed costs (expenses that don’t change with sales volume)
- Enter your variable costs per unit (costs that increase with each unit produced)
- Enter your selling price per unit
- Click calculate to see your break-even point
Break-Even Formula:
Break-Even Units = Fixed Costs ÷ (Price per Unit – Variable Cost per Unit)
Key Metrics:
- Contribution Margin: Price minus variable costs – shows how much each sale contributes to fixed costs
- Break-Even Point: The minimum sales needed to cover all costs
- Margin of Safety: How much sales can drop before you reach break-even