How the break-even calculator works
Each unit you sell contributes its price minus its variable cost toward paying fixed costs. Break-even is reached when those contributions add up to the fixed costs.
Break-even units = Fixed costs ÷ Contribution margin
Units for target profit = (Fixed costs + Target) ÷ Contribution margin
Fixed costs stay the same however much you sell in the period, such as rent, salaries and software. Variable costs rise with each sale: materials, packaging, shipping and payment fees. The result is rounded up to whole units because you cannot sell part of one.
Worked example
A product sells for $50 and costs $30 to make and ship, so each sale contributes $20 (a 40% margin). With $10,000 of monthly fixed costs, you need 500 units, or $25,000 of revenue, to break even. To earn $5,000 profit you would need 750 units.
Frequently asked questions
What is a break-even point?
The sales level at which total revenue equals total costs, so profit is zero.
What is contribution margin?
Price minus variable cost per unit; the amount each sale contributes to fixed costs and profit.
How do I calculate break-even revenue?
Multiply break-even units by price, or divide fixed costs by the contribution margin ratio.
What if I sell several products?
Use a weighted average contribution margin based on your sales mix.
Updated October 2026. Results are estimates for education, not financial or medical advice. All math runs in your browser; nothing you type is sent anywhere.