The break-even point tells you exactly how many units you need to sell to cover all your costs. Essential for startups, product launches, and pricing strategy. Know your minimum sales target before investing in inventory.
Break-Even Point (Units):
Break-Even Revenue:
How to Use This Tool
Enter your total fixed costs (rent, salaries, insurance, etc.).
Enter the variable cost to produce one unit of your product.
Enter your selling price per unit.
Click Calculate to find your break-even point in units and dollars.
The Formula
Break-Even Units = Fixed Costs / (Selling Price - Variable Cost Per Unit). The denominator is called the contribution margin — how much each sale contributes to covering fixed costs.
Why It Matters
You are starting a consulting business with $15,000 monthly fixed costs and $50 variable cost per project. If you charge $200 per project, you need 100 projects/month to break even. This helps set realistic revenue targets.