Free Break-Even Point Calculator
Your break-even point is the sales volume where revenue exactly equals total cost — no profit, no loss. Knowing this number tells you the minimum you must sell every month to stay open.
Results
Cost breakdown at break-even
- Fixed costs62.5%
- Variable costs37.5%
Total revenue $16,000.00 = Fixed $10,000.00 + Variable $6,000.00
About the Break-Even Calculator
The break-even formulas
Break-even units = Fixed Costs / (Selling Price − Variable Cost per Unit). Break-even revenue = Fixed Costs / Contribution Margin Ratio, where contribution margin ratio = (Selling Price − Variable Cost) / Selling Price.
Fixed vs variable cost — get this split right
Fixed costs are what you pay regardless of volume: rent, salaries, insurance, software. Variable costs move with each unit sold: materials, packaging, per-transaction fees, shipping. Miscategorising a cost can move your break-even point by hundreds of units.
Using break-even for pricing decisions
If break-even feels unreachable, you have three levers: cut fixed costs, cut variable cost per unit, or raise the selling price. Small price increases move break-even faster than large volume increases because they widen the contribution margin.
Frequently asked questions
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