BUSINESS & E-COMMERCE

Break-Even Calculator

Calculate how many units you need to sell to cover your costs and reach your profit goal.

Your numbers

Use the same time period for all costs and sales, such as one month.

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Costs that stay roughly the same regardless of sales.
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Average amount received for one unit sold.
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Costs that increase with each unit sold.
units
Enter your current sales to see your margin of safety.
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Leave blank if you only want the break-even point.

Your results

Enter your numbers and select Calculate.

Break-even units — Units you need to sell to cover fixed costs.
Break-even revenue — Sales revenue at the break-even point.
Contribution per unit — Selling price minus variable cost.
Contribution margin — Contribution as a percentage of selling price.
Margin of safety — Add current sales to calculate this.
Units for target profit — Add a target profit to calculate this.

How it works

The calculator first finds your contribution per unit: selling price minus variable cost. It then divides fixed costs by that contribution to find the break-even point.

Break-even units Fixed costs ÷ Contribution per unit

Results are rounded up to the next whole unit because you cannot sell a fraction of a unit in most real-world situations.

What to include

  • Fixed costs: rent, software subscriptions, salaries and other costs that do not change directly with each sale.
  • Variable cost: product cost, packaging, per-order fees and other costs that increase with each unit.
  • Use consistent periods: if fixed costs are monthly, use monthly sales and monthly profit targets.