Budgeting & Income
Break-Even Calculator
The break-even point is where sales exactly cover costs — the moment a business stops losing money and starts making it. Enter your fixed costs, price, and per-unit cost to see how many units and how much revenue you need to break even.
Rent, salaries, insurance — costs that don't change with sales.
Materials, shipping, payment fees — costs per item sold.
Units to break even
2,000
Sell this many to cover all fixed costs.
- Break-even revenue
- $80,000
- Contribution margin per unit
- $25.00
- Contribution margin
- 62.5%
Price minus variable cost — what each sale contributes to fixed costs.
How this calculator works
Contribution margin = price − variable cost per unit. Break-even units = fixed costs ÷ contribution margin (rounded up, since you can't sell a fraction of a unit). Break-even revenue = units × price. When the margin is zero or negative, there's no break-even point.
This is a single-product model at one price. Real businesses have multiple products, changing costs, and step-changes in fixed costs as they scale — treat the result as a planning baseline.
Try an example
Frequently asked questions
How do you calculate the break-even point?
Break-even units = fixed costs ÷ (price per unit − variable cost per unit). The denominator is your contribution margin — what each sale adds toward covering fixed costs. $50,000 in fixed costs at a $25 margin per unit means you break even at 2,000 units.
What's the difference between fixed and variable costs?
Fixed costs stay the same regardless of how much you sell — rent, salaries, insurance, software. Variable costs rise with each sale — materials, packaging, shipping, payment processing. Only variable costs are subtracted from price to get your per-unit margin.
Why does break-even matter?
It tells you the minimum sales you need just to avoid losing money, which frames every pricing and cost decision. A lower break-even — from a higher price, lower costs, or better margins — means less risk and a faster path to profit.
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Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.