Find out how many units you need to sell to cover your costs, and how many more to reach a profit goal.
The break-even formula
Break-even units = fixed costs ÷ (price − variable cost per unit)
The bottom part, price minus variable cost, is the contribution margin: what each sale leaves over to pay the fixed costs. With $10,000 of fixed costs, a $50 price and $30 of variable cost, each sale contributes $20, so you need 10,000 ÷ 20 = 500 units ($25,000 in sales) to break even. To also make $5,000 profit, you need (10,000 + 5,000) ÷ 20 = 750 units.
Fixed vs variable costs
- Fixed costs stay the same however much you sell in the period: rent, salaries, insurance, software subscriptions, loan payments.
- Variable costs go up with each sale: materials, packaging, shipping, card processing fees, sales commissions.
Use the same time period for everything: monthly fixed costs give a monthly break-even.
Ways to break even sooner
- Raise the price, which grows the contribution margin directly (see the what-if lines above).
- Cut variable costs per unit, such as cheaper shipping or better supplier prices.
- Trim fixed costs, which lowers the bar every month.
How we checked this
Before every update, this calculator is run in a real browser with these known answers, and it must match all of them:
- $10,000 fixed, $50 price, $30 cost: 500 units ✓
- Same plus $5,000 profit target: 750 units ✓
Last checked October 26, 2026. Spotted something wrong? The math is done in your browser with the formula shown on this page, so you can check any result by hand.
Questions people ask
What is a break-even point?
The number of sales at which total revenue equals total costs, so you make neither a profit nor a loss.
How do I calculate break-even in dollars?
Multiply the break-even units by the price, or divide fixed costs by the contribution margin ratio ((price − variable cost) ÷ price).
What if my price is below my variable cost?
Then each sale loses money and you can never break even. The price has to be higher than the variable cost per unit.
Should I include my own salary?
Yes, if you want the business to pay you. Add it to fixed costs.