Break-Even Calculator

What Is a Break-Even Analysis?

A break-even analysis tells you exactly how many units you need to sell (or how much revenue you need to generate) to cover all your costs. Below that point, you're losing money. Above it, every additional sale is profit.

The Break-Even Formula

Break-Even Units = Fixed Costs / (Price per Unit − Variable Cost per Unit)

The difference between price and variable cost is called the contribution margin — the amount each unit "contributes" toward covering your fixed costs.

When to Use Break-Even Analysis

• Starting a business – Know how many sales you need before turning profitable
• Launching a product – Set the right price to ensure viability
• Applying for a loan – Show lenders your path to profitability
• Evaluating costs – See how rent increases or supply costs affect your bottom line

Tips to Lower Your Break-Even Point

• Reduce fixed costs – Negotiate rent, use remote teams, choose affordable software
• Increase prices – If your product delivers value, a higher price reduces the units needed
• Lower variable costs – Negotiate with suppliers, buy in bulk, optimize shipping
• Offer premium tiers – Upsell higher-margin products or add-ons

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