The point where total revenue equals total costs — every sale beyond it is profit. Break-even units = fixed costs ÷ contribution margin (price minus variable cost per unit).

What counts as fixed vs variable cost?

Fixed = costs you pay regardless of how much you sell (rent, salaries, software). Variable = costs that grow with each unit (materials, packaging, transaction fees).

How do I lower my break-even point?

Three levers: raise prices, cut variable cost per unit, or cut fixed monthly costs. The first usually has the biggest impact.

Break-even Calculator

For any business with monthly fixed costs. See how many units you need to sell to cover everything — and how soon you'll get there.

Quick answerBreak-even units = fixed costs ÷ (price − variable cost per unit). At $2,500 fixed costs, $28 price, and $8 variable cost: 2500 ÷ 20 = 125 units per month.

Your numbers

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Fixed costs per month

Variable cost per unit

Selling price per unit

Expected sales per month (optional)

units

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Break-even units / month

125 units

That's $3,500.00 in revenue.

Contribution / unit

$20.00

Break-even revenue

$3,500.00

Days to break-even

31.3 days

Revenue vs costs

Where the lines cross is your break-even point. Shaded area is profit.

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How this calculator works

Contribution margin per unit = price − variable cost. Break-even units = fixed costs ÷ contribution margin. Days to break-even = (break-even units ÷ expected monthly units) × 30 days.