Free Break-Even Calculator
Find how many units you need to sell to cover costs and reach your target profit.
What is a break-even calculator?
A break-even calculator is a free online tool that helps you find the break-even point in units and revenue for any business or project. It runs entirely in your browser — no signup, no app, and no data is ever sent to a server.
A break-even calculator tells you exactly how many units you need to sell or how much revenue you need to generate to cover all costs. The break-even point is where total revenue equals total costs — every sale beyond that is profit. This is essential knowledge for any business, whether you're launching a product, setting up a subscription service, or opening a physical store.
How it works
The calculator subtracts variable costs from selling price to get the contribution margin — the amount each sale contributes to covering fixed costs. Break-even (units) = fixed costs ÷ contribution margin. Break-even (revenue) = units × selling price. If you enter a target profit, the calculator adds that to fixed costs and computes the units needed to reach that goal.
When to use a break-even calculator
Before launching any new product or service to understand viability. When setting prices and evaluating cost scenarios. When deciding whether an investment in fixed costs makes sense. When negotiating with investors who want to know the path to profitability. The calculator helps you avoid the common mistake of pricing based on what others charge rather than what covers your costs.
Common mistakes in break-even analysis
The mistake I see most often is forgetting to include all fixed costs. Rent and salaries are obvious, but software subscriptions, insurance, accounting fees, bank charges, and even coffee for the office all add up. I have worked with small business owners who thought their fixed costs were $5,000 per month when the real number was closer to $8,000. That makes the break-even point 40% too low.
Another error is using a single selling price when your product actually has multiple variants at different price points. A coffee shop sells drip coffee at $3 and lattes at $5.50 — the contribution margin differs significantly. For accurate break-even analysis, use a weighted average contribution margin based on your expected sales mix. The calculator handles a single per-unit price, so calculate the weighted average first.
Variable cost creep is the third blind spot. The cost of raw materials, packaging, and shipping changes over time. If you set your price based on last year's costs and your variable costs rise 10%, your break-even point shifts up accordingly. Revisit your break-even calculation quarterly, not annually.
How to use this calculator
- Enter your costs — Input your monthly fixed costs and variable cost per unit.
- Enter your selling price — Input the price per unit you charge customers.
- Read the result — Break-even in units and revenue appears, plus contribution margin. Optionally enter a target profit.
Frequently asked questions
How do I calculate break-even point?
Break-even (units) = fixed costs ÷ (selling price per unit − variable cost per unit). If your fixed costs are $10,000/month, selling price is $50, and variable costs are $20/unit, you need to sell 334 units per month to break even. Revenue break-even = 334 × $50 = $16,667/month.
What is contribution margin?
Contribution margin is the selling price minus variable costs — the amount each sale contributes to covering fixed costs. If you sell something for $50 and it costs $20 in variable costs, your contribution margin is $30 per unit. The higher the contribution margin, the fewer units you need to sell to break even.
How do I calculate when I'll reach a target profit?
Units for target profit = (fixed costs + target profit) ÷ contribution margin per unit. To make $5,000 profit/month with $10,000 fixed costs and $30 contribution margin: ($10,000 + $5,000) ÷ $30 = 500 units. The calculator has a target profit input so you don't need to compute it manually.
What happens when selling price or costs change?
Lowering your price reduces contribution margin and increases the break-even point. Raising variable costs does the same. Lowering fixed costs reduces the break-even point. The calculator shows how sensitive your break-even is to each variable — try changing one number at a time to see the effect.
How often should I recalculate my break-even point?
Recalculate quarterly or whenever your costs or prices change significantly. Many businesses set prices once and never revisit the break-even calculation, only to discover months later that rising material costs have pushed their break-even above actual sales volume. A quarterly check takes five minutes and prevents this costly blind spot.
What is the difference between cash break-even and accounting break-even?
Cash break-even considers only actual cash outflows and excludes non-cash expenses like depreciation. Accounting break-even includes all expenses per standard accounting rules. For most small businesses, cash break-even is more useful for daily decisions, while accounting break-even matters for tax reporting and investor presentations.