Break-Even Calculator

Break-even units = fixed costs ÷ (price per unit − variable cost per unit). The denominator is the contribution margin — what each sale adds toward covering fixed costs. Once you've sold enough units for those contributions to equal fixed costs, you break even; every unit after that is profit.

Fixed costs don't change with how much you sell — rent, salaries, software, tooling, insurance. Variable costs scale with each unit — materials, manufacturing, shipping, payment processing fees. Getting the split right matters, because only variable costs are subtracted per unit in the contribution margin.

If your price is below your variable cost, you lose money on every single sale — the contribution margin is negative — so no amount of volume ever covers fixed costs and there's no break-even point. The tool flags this, because it means the price or cost structure needs to change.