Break-Even Calculator
Free break-even calculator — find how many units you need to sell to cover fixed costs. Enter your costs and price, get your break-even point instantly.
Disclaimer: This tool provides estimates for informational purposes only and does not constitute financial, tax, or legal advice. Results may vary based on your specific circumstances. Always consult a qualified professional before making financial decisions.
This free break-even calculator tells you exactly how many units you need to sell — or how much revenue you need to generate — before your business covers all its fixed costs and starts making a profit. Enter your total fixed costs, variable cost per unit, and selling price per unit, and the calculator shows your break-even point in units and in revenue, along with your contribution margin.
The break-even point is the number of units at which total revenue equals total costs. Below that number, you are operating at a loss. Above it, every sale contributes to profit. Understanding where that line sits is fundamental to pricing decisions, launch planning, and evaluating whether a new product or project makes financial sense.
Fixed costs are expenses that do not change based on sales volume — rent, salaries, software subscriptions, insurance, and professional fees. Variable costs change with each unit sold — materials, transaction fees, packaging, or direct labor per item. The contribution margin (selling price minus variable cost per unit) tells you how much each sale contributes toward covering fixed costs and then generating profit.
For service businesses without discrete units, use "projects" or "hours" as your unit. Set the variable cost as your direct time cost (your hourly rate times estimated hours per project), enter your project fee as the selling price, and the break-even shows how many projects you need to cover your fixed overhead.
This calculator is intentionally simple. It assumes a single product, a constant selling price, and a fixed margin — which is accurate for most small business analyses. If you have multiple products at different margins, calculate each line separately and weight by expected sales mix.
Frequently Asked Questions
- How do I calculate my break-even point?
Break-even point in units = Fixed Costs ÷ (Selling Price − Variable Cost Per Unit). The denominator is your contribution margin per unit. For example, if fixed costs are $5,000/month, selling price is $50, and variable cost is $20, your break-even is 5,000 ÷ 30 = 167 units per month.
- Is there a free break-even calculator?
Yes. This break-even calculator is completely free. Enter your fixed costs, variable cost per unit, and selling price to get your break-even point in units and revenue instantly. No account or signup required.
- What counts as a fixed cost vs a variable cost?
Fixed costs stay the same regardless of how much you sell — rent, salaries, software subscriptions, and insurance. Variable costs change with each unit — materials, transaction fees, shipping, or per-unit labor. If a cost only exists when you make a sale, it is variable.
- Can I use this break-even calculator for a service business?
Yes. Use
- Does the break-even calculator account for taxes?
No. The break-even calculation is pre-tax. To factor in taxes, divide your target profit by (1 − effective tax rate) before adding it to fixed costs. This gives you the pre-tax revenue needed to achieve your after-tax profit goal.
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