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Break-Even Calculator

Find how many units you need to sell to cover costs, test pricing what-if scenarios, and see how long until your startup investment pays off.

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Rent, salaries, insurance, subscriptions
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What customers pay per unit
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Materials, shipping, commissions per unit
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Optional: desired profit on top of break-even
Track progress toward break-even

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How to Use This Calculator

Break-Even Point tab

The default tab. Enter your fixed costs per month, price per unit, and variable cost per unit. The calculator instantly shows how many units you need to sell to cover all costs. Expand "More options" to add a target profit or track units already sold this month.

What-If Pricing tab

Use this when considering a price change. See how raising or lowering your price by X% affects break-even volume, maximum unit loss you can absorb, and extra units needed. Great for pricing decisions before launch or seasonal adjustments.

Time to Break-Even tab

Planning a new business or product? Enter your startup investment and monthly projections. The calculator shows how many months until your cumulative profit covers the initial investment, with optional growth rate and discount rate adjustments.

Share your result

Every input is encoded in the URL. Click Share to send your exact scenario to a co-founder, investor, or advisor.

The Formula

Break-even analysis finds the point where total revenue equals total costs:

Break-Even Units = Fixed Costs ÷ (Price − Variable Cost)

Break-Even Revenue = Fixed Costs ÷ Contribution Margin %

Contribution Margin = Price − Variable Cost
Contribution Margin % = (Price − Variable Cost) ÷ Price × 100

The contribution margin is what each unit contributes toward covering fixed costs and eventually generating profit. A higher margin means fewer units to break even. The break-even point is where total contribution equals total fixed costs — every unit sold after that is profit.

Example

Sarah — Coffee shop owner, Austin TX

Sarah's coffee shop has $12,000/month in fixed costs (rent, staff, insurance). She sells specialty drinks at $5.50 average, with $2.20 in variable costs (beans, cups, milk) per drink.

Break-Even Point tab

Fixed costs/month$12,000
Price per drink$5.50
Variable cost per drink$2.20
Contribution margin$3.30 (60%)
Break-even units3,637 drinks/month
Break-even revenue$20,000

Sarah needs to sell about 3,637 drinks per month (roughly 121/day) to cover all costs. Every drink after that generates $3.30 in pure profit.

What-If Pricing tab

If she raises price 10%$6.05/drink
New break-even3,117 drinks
Units she can lose883 drinks

A 10% price increase means Sarah can lose up to 883 customers per month and still break even — a 22% volume cushion.

FAQ

The break-even point is the number of units you need to sell (or revenue you need to earn) so that total revenue exactly equals total costs. Below break-even you lose money; above it you profit. It's the most fundamental metric for any business or product launch.
Fixed costs stay the same regardless of how many units you sell: rent, salaries, insurance, software subscriptions. Variable costs change with each unit sold: raw materials, shipping, packaging, sales commissions. Some costs are semi-variable (e.g., electricity) — allocate the fixed portion to fixed costs and the per-unit portion to variable.
Contribution margin is Price minus Variable Cost — the amount each unit "contributes" toward paying off fixed costs. A $50 product with $30 in variable costs has a $20 contribution margin (40%). Higher margins mean you need fewer sales to break even. SaaS businesses typically have 80-90% margins; physical products 30-60%.
Use the What-If Pricing tab. Enter your current price and volume, then test a price change percentage. The calculator shows how many customers you can afford to lose with a price increase (or how many extra you need with a decrease). A 10% price increase rarely causes a 10% volume drop — so raising prices is often the fastest path to profitability.
Break-even analysis assumes constant prices, linear costs, and a single product (or blended average). In reality: prices may vary by customer, variable costs can change with volume (bulk discounts), fixed costs increase in steps as you scale, and demand is uncertain. Use it as a planning tool and directional guide — not a precise prediction.

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