Break-even calculator
Every sale contributes the price minus its variable cost toward the fixed costs. Break-even is the point where those contributions have covered them all.
USD
USD
USD
USD
Break-even units445
- Break-even revenue
- $20,025
- Contribution per unit
- $27.00
- Contribution margin
- 60.00 %
- Units for the target profit
- 630
- Revenue for the target profit
- $28,350
The formula
Contribution = price − variable cost. Break-even units = fixed costs / contribution. For a profit target, units = (fixed costs + target) / contribution.
Worked example
Fixed costs 12,000, price 45, variable cost 18: contribution 27, so 445 units break even, which is 20,025 of revenue.
How to use it
- 1Fixed costs are the ones that do not change with volume: rent, salaries, subscriptions.
- 2Variable costs scale with each unit: materials, shipping, transaction fees.
- 3If the contribution is zero or negative, no volume will ever help — the price or the cost has to change.
Questions people ask
Should I use a monthly or annual figure?
Either, as long as fixed costs and the period match. Monthly is easier to act on.
What about a service business?
Replace units with billable hours or clients, and variable cost with the direct cost of delivering one of them.
Last reviewed: 2026-10-20