Break-even Calculator
Determine when your business will become profitable
Rent, salaries, utilities, etc.
Materials, labor, commissions, etc.
Optional: See how close you are to break-even
What is a Break-even Point?
The break-even point is the number of units you need to sell to cover all your business costs (both fixed and variable). At this point, your business isn’t making a profit but isn’t losing money either. Understanding your break-even point helps with pricing strategies, cost control, and financial planning.
How to Use This Break-even Calculator
- Enter your fixed costs – These are expenses that don’t change with sales volume (rent, salaries, insurance)
- Enter variable costs per unit – Costs that increase with each unit produced/sold (materials, packaging, shipping)
- Enter your price per unit – How much you charge customers for each unit
- Optionally enter current sales – See how close you are to breaking even
- Click “Calculate” – Get your break-even point and analysis
Break-even Formula
The break-even point is calculated using this formula:
Break-even Point (units) = Fixed Costs ÷ (Price per Unit – Variable Cost per Unit)
Why Break-even Analysis Matters
- Pricing decisions – Understand how price changes affect profitability
- Cost control – Identify opportunities to reduce fixed or variable costs
- Financial planning – Set realistic sales targets and growth goals
- Investment evaluation – Assess the viability of new products or services