Break-Even Calculator
Figure out exactly how many units you need to sell before your business turns a profit. Enter your fixed costs, price, and variable cost per unit, and this calculator does the rest. You will see your break-even point in units and revenue, plus an interactive chart showing your loss and profit zones.
Enter three numbers below: your total monthly fixed costs (rent, salaries, loan payments, etc.), the price you charge per unit, and the variable cost to produce or deliver each unit. The calculator shows how many units you need to sell to cover all costs, and the chart highlights exactly where you cross from loss into profit.
All results update in real time as you move the sliders or type new values.
Break-Even Point
278
units to break even
Break-Even Revenue
$41,666.67
Contribution Margin / Unit
$90.00
Contribution Margin Ratio
60.0%
Revenue vs. Total Cost
What does this mean?
At a price of $150.00 and a variable cost of $60.00 per unit, each sale contributes $90.00 toward covering your $25,000.00 in monthly fixed costs. You need to sell 278 units ($41,666.67 in revenue) before you start generating profit.
If you are considering financing to grow your business (a term loan, equipment financing, etc.), try adding the monthly payment to your fixed costs and re-running this calculator. That shows your new break-even point with the loan factored in.
Need financing to scale past your break-even point?
Get Your OptionsUnderstanding Break-Even Analysis for Your Business
Break-even analysis answers a straightforward question: how many units do you need to sell before your business starts making money? Whether you are launching a new product, opening a second location, or evaluating a business term loan for expansion, knowing your break-even point helps you plan with real numbers instead of guesses.
The formula: Break-Even Units = Fixed Costs / (Price Per Unit - Variable Cost Per Unit). The bottom half of that equation (price minus variable cost) is called the contribution margin. A higher contribution margin means you need fewer sales to cover your overhead. The contribution margin ratio, expressed as a percentage of selling price, tells you how much of each revenue dollar goes toward covering fixed costs.
Fixed costs are expenses that remain constant regardless of your sales volume: rent, salaries, insurance, loan payments, and subscriptions. Variable costs fluctuate with production or sales: raw materials, packaging, shipping, and sales commissions. Correctly categorizing your costs is the key to an accurate break-even analysis.
One of the most powerful applications of break-even analysis is evaluating financing decisions. If you are considering equipment financing to increase production capacity, add the monthly loan payment to your fixed costs and recalculate. This tells you exactly how many additional units you need to sell to justify the investment. Use our loan payment calculator to determine the exact monthly payment for any loan scenario.
For businesses evaluating different financing structures, our Factor Rate to APR Converter can help you understand the true cost of short-term financing, while a business line of credit may offer more flexible capital to cover costs as you grow past your break-even point.
How It Works
Enter Your Numbers
Input your monthly fixed costs, price per unit, and variable cost per unit using the sliders or text fields.
See Your Break-Even Point
Instantly see how many units you need to sell and how much revenue you need to generate to cover all costs.
Visualize Your Profit Zone
The interactive chart shows exactly where your revenue line crosses your cost line. Everything beyond that crossing point is profit.
What You Get
Break-Even Units
The exact number of units you need to sell to cover all fixed and variable costs with zero profit and zero loss.
Break-Even Revenue
The total revenue dollar amount your business needs to generate to reach the break-even point.
Contribution Margin per Unit
How much each unit sold contributes toward covering your fixed costs and generating profit.
Contribution Margin Ratio
The percentage of each revenue dollar that goes toward covering fixed costs. A key profitability metric for any business.
Interactive Profit Chart
A visual chart showing revenue and total cost lines with shaded loss and profit zones for instant clarity.
Actionable Context
Educational callouts explain your results and show how to factor loan payments into your break-even analysis.
Break-Even Calculator — Frequently Asked Questions
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