Free break-even calculator. Calculate the sales volume needed to cover costs and start generating profit.

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💡 Financial Tip: Know your unit economicsRule
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Break-Even Calculator

Find your break-even point and profit analysis

Rent, salaries, insurance, subscriptions
Selling price per product/service
Variable cost (materials, labor, shipping)
How many units you currently sell
Break-Even Units
167 units
Break-Even Revenue
$8 350
Contribution Margin
$30.00 (60.0%)
Current Profit
+$1 000
✅ At 200 units, you're $1 000 above break-even (33 extra units)

📊 Revenue vs Cost

023466992115138161184207230253276322$-6k$0k$6k$11k$17k
  • Revenue
  • Total Cost
  • Profit

💰 Unit Economics

Price per unit:$50
Cost per unit:$20
Contribution margin:$30 (60.0%)
Fixed costs to cover:$5 000
Units to break even:167

📚 Understanding the Break-Even Point

The break-even point is the level of sales at which total revenues equal total costs, resulting in zero profit or loss. It is a critical milestone for any business.

Knowing your break-even point helps you set pricing, understand your margin of safety, and determine how many units you must sell to cover your fixed costs like rent and salaries.

Example: If your fixed costs are $2,000, you sell a product for $50, and it costs you $30 to make, your contribution margin is $20. You need to sell 100 units to break even ($2,000 ÷ $20 = 100).

📚 How to Lower Break-Even

  • Reduce fixed costs: Renegotiate rent, cut subscriptions, automate tasks
  • Increase price: Add value, improve branding, target premium customers
  • Lower variable costs: Bulk purchasing, better suppliers, reduce waste
  • Increase volume: Marketing, partnerships, new channels

❓ Frequently Asked Questions

Q: What is the 'Contribution Margin'?
A: It is the selling price per unit minus the variable cost per unit. This is the amount of money each sale contributes towards covering your fixed costs.

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