Break-Even Analysis Calculator
Find how many units you need to sell each month to cover your costs, plus the sales needed to hit a profit target.
Costs and price
Break-even point
Units per month to break even
Enter your costs and price to find your break-even point.
How break-even guides pricing
Many small businesses set prices by gut feel. A break-even analysis makes you face the math. At a $99 price with $22 of variable cost per unit and $15,000 of fixed costs a month, you need to sell 195 units a month just to cover costs. Knowing that number changes how you plan marketing spend, when you raise prices and when you cut overhead.
How the calculation works
Each sale contributes its price minus its variable cost. That contribution pays down fixed costs first. Divide fixed costs by contribution per unit and round up, and you have your break-even volume. Add a profit target to fixed costs and you get the volume needed to reach that profit.
How to lower your break-even point
- Raise your price. It is the fastest lever, because every extra dollar goes straight to contribution.
- Lower variable cost. Negotiate with suppliers, cut packaging waste or automate fulfilment steps.
- Cut fixed costs. Review office space, unused software and tools nobody opens.
Frequently asked questions
What counts as a variable cost?
Anything that rises with each unit sold: materials, packaging, shipping, payment fees and sales commissions. If the cost stays the same whether you sell 10 units or 1,000, it is fixed.
How do I use this for a service business?
Treat one project, client or billable hour as a unit. Use your average price per unit and the direct costs of delivering it, such as contractor fees.
Should marketing spend be fixed or variable?
A monthly retainer or set ad budget is usually fixed. Costs paid per sale, like affiliate commissions, are variable.