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Business & Finance

Break-even Calculator

Know exactly when you start making money
Every business has a threshold — the number of units or dollars at which revenue finally exceeds costs. This calculator finds yours. Enter your fixed costs, per-unit variable cost, and selling price to see exactly how many units you need to sell before you’re profitable. Then compare your projection against that target.

Break-even =

Fixed Costs

÷

Price − Variable Cost
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The basics

Three numbers that define your break-even

Understanding these inputs is the difference between guessing and knowing your numbers.

Fixed costs

Expenses that don’t change with volume: rent, salaries, software subscriptions, insurance. These must be covered before you make a single dollar of profit.

Variable costs

Costs that scale with each unit: raw materials, packaging, shipping, payment processing fees. Every additional sale adds these costs.

Contribution margin

Price minus variable cost. This is what each unit contributes toward covering fixed costs. Higher margin = fewer units to break even.

Strategy

Three ways to lower your break-even point

Once you know your break-even, here’s how to move it. Each lever affects the equation differently.

E-commerce sellers

Shopify, Amazon, and marketplace merchants evaluating product viability before investing in inventory.

DTC brand owners

Direct-to-consumer brands modeling pricing strategies across product lines and marketing channels.

Slower, sustainable
Product managers

Teams deciding on launch pricing, discount strategies, and profitability targets for new SKUs.

Real-world truth

Most small businesses take 18-24 months to reach break-even. The calculator gives you the unit count — but in practice, achieving those unit sales requires marketing, sales cycles, and seasonality. Treat the break-even number as your first milestone, not your finish line.

Start tracking

How many units until you’re profitable?

Enter your costs and price. The chart shows the exact point where revenue crosses costs.