Break-Even Calculator

Introduction

The Break-Even Calculator estimates how many units, projects, hours, or packages must be sold before fixed costs are covered. It is a simple way to test whether pricing and cost assumptions make commercial sense.

About this break-even tool

Break-even analysis focuses on contribution margin: the amount left from each sale after direct variable cost. That margin pays fixed costs such as rent, software, insurance, equipment, or salaries. If the margin is too small, sales volume has to be high before any profit appears.

How this tool works

Enter fixed costs for the period, selling price per unit, and variable cost per unit. The calculator subtracts variable cost from price to find contribution margin, then divides fixed costs by that margin and rounds up to the next whole unit.

1. Enter fixed costs for the period you want to analyse.
2. Add your selling price per unit and variable cost per unit.
3. Review contribution margin, break-even units, and break-even revenue.

When to use this tool

Use it when pricing a new product, planning a service package, reviewing a side business, or deciding whether a discount still leaves enough margin. Revisit the calculation whenever supplier costs, ad spend, staffing, or average selling price changes.

Good to know

• The calculation assumes each unit has the same price and variable cost.
• Use realistic cost categories so the break-even point is not understated.