Break-Even Calculator

About Break-Even Calculator

The break-even point is the number of units you must sell to cover all costs. Enter fixed costs, price per unit and variable cost per unit, and the tool shows the units and revenue needed to break even. It helps with pricing decisions, launching a product or checking whether a side business is viable. If price is lower than variable cost, you lose money on each sale.

Example

Input: fixed costs $3,000, price $25, variable cost $10. Output: contribution of $15 per unit, 200 units needed and $5,000 in revenue.

Tips for better results

• Include all monthly fixed costs, such as rent, software and insurance.
• Test different prices to see how break-even changes.
• Do not forget your own time as a cost.

When to use Break-Even Calculator

Use this calculator when you are weighing a new product, a side business, a subscription or a market stall and want to know how much you must sell before you stop losing money. Founders, freelancers and small shop owners can adjust price and costs to test scenarios. It gives a planning number, not a forecast, so combine it with realistic estimates of demand and keep your assumptions written down for later review.

Real-world uses

• A bakery owner checks how many loaves per month cover rent and equipment payments before deciding to open a weekend stall.
• A freelancer who plans to sell an online course works out how many sign-ups are needed to cover filming and software costs.
• A shop owner tests two price levels to see how many more units a lower price would require before reaching break-even.
• A student starting a small printing business compares equipment costs against a planned price per item to judge if it is viable.

Common mistakes to avoid

• Mixing monthly fixed costs with yearly ones gives a wrong answer, so convert every figure to the same period before entering it.
• Treating a cost that changes with each sale as fixed hides the true unit economics, so separate per-unit costs such as materials and packaging.
• Assuming you will reach the break-even volume quickly is risky, so compare the number against how many sales you can realistically expect.

Find how many units you need to sell to cover costs. It works instantly in your browser, so there is nothing to install and nothing to upload. Break-Even Calculator is part of our collection of 100 free tools in the Small Business category.

How to use it

1. Enter your information or choose a file in the tool above.
2. Your result appears right below the tool.
3. Copy the result, or adjust your input and try again.

Frequently asked questions

What counts as a fixed cost?

Fixed costs stay roughly the same however much you sell, such as rent, insurance, software subscriptions and salaries. Variable costs, such as materials and shipping, rise with each unit sold.

What if my break-even number is too high?

Try raising the price, lowering variable cost per unit, or cutting fixed costs, then rerun the numbers. You can also decide whether the target is realistic for your market before going ahead.

Is Break-Even Calculator free to use?

Yes. Break-Even Calculator is completely free and you do not need to create an account.

Is my data uploaded anywhere?

No. This tool runs in your browser, so what you type or choose stays on your device.

How accurate are the results?

Calculations use standard formulas, but always double-check important figures, especially for money, health or legal decisions.