Break-Even Calculator
How many units you must sell before you stop losing money.
How it works
Every unit sold contributes price minus variable cost towards the fixed costs. Break-even is where those contributions exactly cover them:
units = fixed costs / (price - variable cost)
The contribution margin is the more diagnostic number. A thin margin means break-even is enormously sensitive to price — a 10% discount on a 20% margin business needs a 100% increase in volume just to stand still.
Common questions
What counts as a fixed cost?
Anything that does not change with volume over the period: rent, salaried staff, insurance, software. Materials, shipping and commission are variable.