Business

Break-Even Calculator

Calculate how many units you need to sell to cover fixed costs at a given price and variable cost per unit.

Last reviewed: April 30, 2026Free toolMethodology

Break-Even Calculator

These fields start with sample inputs. Keep them or replace them, then run the tool to show a fresh result.

Number fields accept plain values and common formatted input such as 250000, 250,000, or 1,234.56.

Result

Calculating the sample result.

Why it matters

Break-even analysis is useful for pricing launches, quote reviews, and margin conversations because it translates costs into a concrete sales target.

When to use

  • Setting a launch price for a new product or service package
  • Checking if rising variable costs make a sales plan unrealistic
  • Estimating the minimum volume needed before a campaign becomes profitable

Inputs & Outputs

Inputs

  • Fixed costs stay the same regardless of unit volume during the planning period.
  • Variable cost per unit includes the direct cost that scales with each additional sale.
  • Price per unit is the average selling price before discounts or refunds.

Outputs

  • Break-even units show the number of sales needed to cover fixed and variable costs.
  • Break-even revenue converts that unit target into a revenue target.

Contribution margin method

First calculate contribution margin per unit by subtracting variable cost from price. Then divide fixed costs by that margin to estimate the unit volume required to break even.

Break-even units = fixed costs / (price per unit - variable cost per unit)

Worked example

1

Small ecommerce launch

A store has 15,000 in fixed launch costs, sells at 80, and incurs 35 in variable cost per order.

Inputs

  • Fixed costs: 15,000
  • Price per unit: 80
  • Variable cost per unit: 35

Steps

  • Contribution margin = 80 - 35 = 45
  • Break-even units = 15,000 / 45 = 333.3

Result

  • The business needs roughly 334 sales to break even.

Edge cases & caveats

  • The model assumes one average price and one average variable cost.
  • If discounts, channel mix, or returns vary widely, use scenario ranges instead of a single number.

Frequently Asked Questions

Can break-even analysis work for services?

Yes. Use an average selling price per project or retainer and the direct delivery cost tied to that work.

What if price equals variable cost?

There is no contribution margin, so the model cannot reach break-even. The result is effectively impossible without a pricing or cost change.

Keep going

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