Business Tools
Break-Even Calculator
Estimate units and revenue needed to cover entered fixed and variable costs.
Powering up the tool…
What this tool does
About the break-even calculator
The calculation shows contribution per unit and rounds required units upward. It assumes constant price and unit cost across the scenario.
- Contribution
unit price - variable cost per unit- Units
fixed costs / contribution per unit- Revenue
break-even units × unit price
- Selling price and variable unit cost remain constant.
- All relevant fixed costs use the same time period.
- Demand and capacity are not modelled.
How to use it
- Enter monthly (or annual) fixed costs, the unit price and the variable cost per unit.
- Read the contribution per unit — price minus variable cost.
- Read break-even units (rounded up, because you cannot sell 0.4 of a unit) and break-even revenue.
- Stress-test: nudge the price and costs to see how fragile the number is.
Useful for
- Find how many units a new product must sell before it stops losing money.
- Test whether a price cut still clears your fixed costs at realistic volume.
- Put a hard number on “is this side project viable?” before committing.
Straight answers
Break-Even Calculator FAQ
What counts as fixed versus variable cost?
Fixed costs arrive whether you sell or not — rent, subscriptions, salaries. Variable costs scale per unit — materials, shipping, transaction fees. Grey areas exist; put each cost where it behaves.
My contribution per unit is negative — what now?
Every sale loses money before fixed costs even start, so no volume rescues it. Raise the price or cut the unit cost; the calculator surfaces this immediately instead of letting a big units number hide it.