Break-even calculator

Rent, software, insurance, base pay, and regular bills that do not change with sales volume.

Materials, packaging, and transaction fees that occur with each sale.

What the customer pays for one unit, before sales tax.

Sample amounts. Replace them with your own numbers.

Units to break even
120 units

Covers your entered fixed and variable costs

Sales revenue needed
$4,800.00
Left per sale
$25.00
Share left after item costs
62.50%
Fixed costs covered
$3,000.00
More

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How it works & common questions

What is break-even and why does it matter?

Your break-even number tells you exactly when your business stops losing money and starts making a profit. Every sale brings in revenue, but first it must cover that item's direct costs (materials and packaging). Whatever remains is your contribution margin, which goes toward paying your fixed monthly expenses like rent and utilities.

A worked example

Suppose you make ceramic mugs. Your studio rent and kiln lease total $3,000 every month (fixed costs). Each mug costs $15 in clay, glaze, packaging, and payment fees (variable cost). You sell each mug for $40.

Common mistakes

Leaving out recurring costs like software subscriptions, merchant fees, accounting fees, or equipment maintenance leads to an artificially low break-even number. Also, if your variable cost per unit exceeds your selling price, you lose money on every transaction and no amount of sales volume can ever break even.

How to use Break-even calculator

  1. Enter your total fixed costs for a period (e.g. monthly rent, software, and loan payments).
  2. Enter the variable cost and selling price for one unit of your product or service.
  3. See the exact number of units and sales dollars needed to break even.

This tool assumes a single product and constant costs. It does not account for income taxes, step-fixed costs (like hiring a second employee after a volume threshold), or tiered volume discounts.

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