Break-Even Point Calculator

Find how many units or how much in sales you need to cover your costs, with several products, itemised fixed costs, a profit goal, margin of safety and start-up payback.

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Updated: October 2026

Find out how many units you need to sell before your business stops losing money. This calculator divides your fixed costs by the profit each unit leaves after its variable costs, so small sellers, freelancers, and product teams can check pricing and sales targets before they commit to a plan.

How to find your break-even point

  1. Enter your total fixed costs for the period, such as rent, salaries, software subscriptions, and insurance.
  2. Enter the selling price for one unit.
  3. Enter the variable cost for one unit, such as materials, packaging, shipping, or sales commissions.
  4. Check the result. It shows the number of units you must sell to cover all costs. Any sale above that number adds to your profit.

Common mistakes to avoid

  • Mixing up fixed and variable costs. Rent stays the same whether you sell one unit or a thousand, while shipping changes with every order.
  • Using a price that includes sales tax. Tax is usually collected for the government, so it is not part of your revenue per unit.
  • Entering monthly fixed costs with a yearly unit sales target, or the reverse. Keep both figures on the same time period.
  • Setting the variable cost higher than the selling price. In that case, each sale loses money, and no number of units will reach break-even.

What the result means

The result is a count of units, not a dollar amount. To find the sales revenue at break-even, multiply the units by the selling price. If the number looks too high to reach, try a higher price, lower variable costs, or lower fixed costs and recalculate.

Accuracy and limits

The calculator assumes that the price and variable cost stay the same for every unit. It does not account for discounts, bulk pricing, seasonal demand, or costs that rise as volume grows. Treat the result as a planning estimate and review it when your costs change.

Questions people ask about break-even analysis

What is a break-even point?

It is the number of units or the amount of revenue at which total income equals total costs. Below that point you lose money, and above it you make a profit.

What counts as a fixed cost?

A fixed cost is an expense that does not change with how much you sell in a given period. Common examples are rent, insurance, and salaries.

What counts as a variable cost?

A variable cost changes with each unit you sell. Materials, packaging, payment processing fees, and per-order shipping are typical examples.

Can I use this for services instead of products?

Yes. Count each billable hour or project as one unit, and enter the hourly rate or project fee as the price. Add the costs that rise with each job as variable costs.

Why is my break-even number so high?

A high result usually means the fixed costs are large or the profit per unit is small. Check whether the variable cost is close to the selling price, since that leaves little margin to cover fixed costs.

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