Pricing & profit

Break-Even Calculator

Find the whole-unit sales needed to cover fixed costs.

Free, no sign-upRuns in your browserReviewed October 2026Formula & methodology
US dollars
US dollars
US dollars

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Break-even unitsExample200 unitsunits
Revenue at whole-unit break-even
$10,000
Contribution per unit
$30.00

Understand the result

What is break-even?

The break-even point is the number of units you must sell for revenue to cover all fixed and variable costs, leaving zero profit. Divide fixed costs by the contribution per unit (price minus variable cost). With $6,000 of fixed costs and a $30 contribution per unit, you break even at 200 units.

Every unit you sell contributes its price minus its variable cost toward fixed costs such as rent, salaries and software. Once those contributions add up to your fixed costs, each additional sale is profit.

Break-even unitsFixed costs ÷ (Price − Variable cost per unit)
Break-even revenueFixed costs ÷ Contribution margin ratio
Units for a profit goal(Fixed costs + Target profit) ÷ Contribution per unit

Example: a candle business

Monthly fixed costs are $6,000. Each candle sells for $50 and costs $20 in wax, jar, wick, label and shipping supplies.

  1. Contribution per candle: $50 − $20 = $30
  2. Break-even: $6,000 ÷ $30 = 200 candles a month
  3. Break-even revenue: 200 × $50 = $10,000
  4. For a $3,000 monthly profit: ($6,000 + $3,000) ÷ $30 = 300 candles

Raising the price to $55 lifts the contribution to $35 and drops break-even to 172 candles, as long as volume holds.

Fixed or variable?

  • Fixed: rent, salaries, insurance, software subscriptions, loan payments.
  • Variable: materials, packaging, shipping, payment processing and marketplace fees, sales commissions.
  • Mixed costs such as utilities: split them, or treat them as fixed to stay conservative.

Common mistakes

  • Forgetting per-sale fees. Card processing and marketplace fees are variable costs and shrink your contribution.
  • Mixing periods. Use monthly fixed costs for a monthly break-even and annual costs for an annual one.
  • Ignoring capacity. A break-even you cannot physically produce or sell in the period is a signal to change the price or the cost structure.
Common questions

Break-Even FAQ

How do I calculate the break-even point in dollars?

Divide fixed costs by the contribution margin ratio, which is contribution per unit ÷ price. With $6,000 fixed costs and a $30 contribution on a $50 price, the ratio is 0.60 and break-even revenue is $6,000 ÷ 0.60 = $10,000.

What if my price is below the variable cost?

Then each sale loses money before fixed costs, and there is no break-even point. Raise the price, cut the variable cost or stop selling that item.

Why does the calculator round units up?

You cannot sell part of a unit, so rounding up gives the first whole number of sales that fully covers fixed costs.

Does break-even include my own salary?

Only if you include it in fixed costs. Many owners add a fair salary for themselves so the break-even point reflects a business that actually pays them.

Guides for this calculation

Build context around the numbers with worked examples from our guides.

Contribution Margin Formula: Calculate It, Understand It & Use It →