Break-even Calculator
Know exactly when you start making money
Every business has a threshold — the number of units or dollars at which revenue finally exceeds costs. This calculator finds yours. Enter your fixed costs, per-unit variable cost, and selling price to see exactly how many units you need to sell before you're profitable. Then compare your projection against that target.
Three numbers that define your break-even
Understanding these inputs is the difference between guessing and knowing your numbers.
Fixed costs
Expenses that don't change with volume: rent, salaries, software subscriptions, insurance. These must be covered before you make a single dollar of profit.
Variable costs
Costs that scale with each unit: raw materials, packaging, shipping, payment processing fees. Every additional sale adds these costs.
Contribution margin
Price minus variable cost. This is what each unit contributes toward covering fixed costs. Higher margin = fewer units to break even.
Three ways to lower your break-even point
Once you know your break-even, here's how to move it. Each lever affects the equation differently.
High impact
Increase price
A 10% price increase, assuming demand stays stable, can reduce your break-even volume by 15-20%. This is the fastest lever but requires pricing power.
Medium impact
Cut variable costs
Negotiating supplier rates or finding cheaper materials drops your per-unit cost. Even $2/unit savings on a $50 product can reduce break-even by 40+ units.
Slower, sustainable
Reduce fixed overhead
Moving to a smaller office, cancelling unused tools, or renegotiating contracts lowers the monthly hurdle you must clear before profitability.
Cost & Price Structure
Break-even Units
Break-even Revenue
Net Profit/Loss
Margin per Unit
Strategic Insights
To reach your break-even point faster, you can:
- Increase price per unit to improve margin.
- Negotiate better rates with suppliers to reduce variable costs.
- Reduce monthly fixed overhead (rent, subscriptions, etc.).
Summary at 300 Units
Congratulations! You are operating profitably.
Break-even Units
Break-even Revenue
Net Profit/Loss
Margin per Unit
Strategic Insights
To reach your break-even point faster, you can:
- Increase price per unit to improve margin.
- Negotiate better rates with suppliers to reduce variable costs.
- Reduce monthly fixed overhead (rent, subscriptions, etc.).
Summary at 300 Units
Congratulations! You are operating profitably.
Most small businesses take 18-24 months to reach break-even. The calculator gives you the unit count — but in practice, achieving those unit sales requires marketing, sales cycles, and seasonality. Treat the break-even number as your first milestone, not your finish line.
How many units until you're profitable?
Enter your costs and price. The chart shows the exact point where revenue crosses costs.