Break-Even Calculator
Know your numbers before you launch. This free break-even calculator helps you determine how many units you need to sell — or how much revenue you need — to cover your costs and start making a profit.
Rent, salaries, insurance, subscriptions — costs that don't change with sales volume.
Materials, shipping, commissions — costs that increase with each unit sold.
The price you charge customers for one unit of your product or service.
Your Break-Even Analysis
Enter your costs and pricing to see your break-even analysis.
FAQs
What is a break-even point?
The break-even point is when your total revenue equals your total costs (fixed + variable). At this point, your business is neither making a profit nor a loss. Every sale beyond the break-even point generates profit.
How do I calculate my fixed costs?
Fixed costs are expenses that stay the same regardless of how much you sell. Common examples include rent, salaries, insurance premiums, software subscriptions, loan payments, and utility bills. Add up all these monthly expenses to get your total fixed costs.
What counts as a variable cost?
Variable costs change in proportion to your sales volume. They include raw materials, packaging, shipping costs, sales commissions, payment processing fees, and manufacturing labor directly tied to production.
Why is the break-even analysis important for startups?
Break-even analysis helps startup founders understand the minimum viable revenue needed to sustain the business. It informs pricing strategy, helps set realistic sales targets, and is essential information for investor pitches and business plans.
Can I use this for a service-based business?
Yes. For service businesses, think of a 'unit' as one project, one hour of consulting, or one client engagement. Your variable cost per unit would be the direct cost of delivering that service (e.g., contractor fees, materials, travel).
How often should I recalculate my break-even point?
Recalculate whenever your costs or pricing change significantly — at least quarterly. Changes in rent, supplier prices, new hires, or pricing adjustments all affect your break-even point.