What is the break‑even point?

The break‑even point is the number of units or sales revenue needed to cover all fixed and variable costs. At this point, your business makes zero profit – but also zero loss.

What is contribution margin?

Contribution margin = Price per unit – Variable cost per unit. It shows how much each sale contributes to covering fixed costs before generating profit.

Financial Strategy & Planning

Break‑Even Calculator

Find the exact units or sales revenue needed to cover costs.
Plus contribution margin analysis – in real time.

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💰 Cost Structure

🏢 Total Fixed Costs ($)

Rent, salaries, insurance, software – costs that don't change with sales volume.

💵 Price Per Unit ($)

📦 Variable Cost Per Unit ($)

Materials, shipping, commissions – costs that scale with each unit sold.

📊 Break‑Even Point

units need to be sold

Break‑Even Sales

$0.00

Contribution Margin

$0.00

Contribution Margin Ratio: 0% – each dollar of sales contributes this much to fixed costs.

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📐 Break‑Even Formula

B/E (units) = Fixed Costs ÷ (Price – Variable Cost)

The denominator (Price – Variable Cost) is your contribution margin per unit – the amount each sale contributes to covering overheads.

📈 Why It Matters

Knowing your break‑even point helps you set sales targets, price products correctly, and evaluate risks. A lower break‑even means less vulnerability to sales fluctuations.

🚀 Pro Tips

Try reducing fixed costs (e.g., renegotiate rent) or improving contribution margin (raise price or lower variable costs). Our calculator shows you the impact instantly.