Break-Even Calculator
How many do you have to sell before you stop losing money? Enter three numbers.
Result
$0.00
Where the money goes
Saving keeps your figures on this device only — nothing is sent anywhere.
The formula
Contribution per unit = Price − Variable cost per unit
Break-even units = Fixed costs ÷ Contribution per unit
Contribution is the useful concept here: it is the amount each individual sale contributes toward paying your fixed costs. Until the fixed costs are fully covered, every sale is repaying overhead. After that point, each additional unit's entire contribution is profit — which is why crossing break-even changes a business so sharply.
Worked example
Defaults: $600 monthly fixed costs, $24 price, $9.50 variable cost.
- Contribution per unit: $24.00 − $9.50 = $14.50
- Break-even: $600 ÷ $14.50 = 42 units (rounding up)
- That is $1,008 in sales just to reach zero
- At 60 units: (60 × $14.50) − $600 = $270 profit
Which lever actually moves it
Try these one at a time in the calculator, and note that they are not equally effective:
- Raise the price 10% ($24 → $26.40): contribution rises to $16.90, break-even falls to 36 units. A 10% price rise cut the target by roughly 14%.
- Cut the unit cost 10% ($9.50 → $8.55): contribution rises to $15.45, break-even falls to 39 units — noticeably weaker than the price change.
- Cut fixed costs 10% ($600 → $540): break-even falls to 38 units.
Price is usually the strongest lever and the one small sellers are most afraid to touch, because a price rise moves the whole contribution figure while a cost cut only moves part of it. If nothing else comes out of this page: test a price increase before you chase volume.
Questions
What counts as a fixed cost versus a variable cost?
Fixed costs are the ones you pay this month even if you sell nothing: subscriptions, rent, a marketplace store fee. Variable costs occur per sale: materials, packaging, postage, percentage fees. If you are unsure, ask whether selling one more unit increases the cost — if yes, it is variable.
Should percentage-based selling fees go in variable costs?
Yes. Convert them to a per-unit amount at your usual price. A 6.5% fee on a $24 item is $1.56, so include that in the variable cost per unit alongside materials.
Does break-even include paying myself?
Only if you put your own wage in as a fixed cost — and you should. A business that breaks even without paying its owner is not at break-even; it is a job funded by you.
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