Break-even calculator

Find out how many sales you need — in 10 seconds.

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Your break-even point appears right here as you type — or press the button to try example numbers.

Good to know

What goes into your break-even number

Enter three numbers: your monthly fixed costs, your price per sale, and what each sale costs you to deliver. The calculator instantly shows how many sales you need each month to break even, plus the revenue that represents. Want more than survival? Add a target profit to see the sales count that pays your bills and you too.

What your break-even point actually tells you

Your break-even point is the moment revenue catches up to your costs: every sale before it costs you money, every sale after it is profit. It turns a vague idea like "I'll sell candles" into a testable target, like "I need to sell 214 candles a month," about 7 a day, a number you can judge against reality.

The formula, worked through

Start with contribution margin: your price minus your variable cost per sale, the slice each sale leaves to chip away at fixed costs. Divide monthly fixed costs by that margin to get break-even units, then multiply by price for revenue. Example: $2,400 in fixed costs and a $3.60 margin per coffee means 667 coffees a month.

Fixed costs vs. variable costs

Fixed costs are bills that show up whether you sell anything or not: rent, salaries, insurance, loan payments. Variable costs scale with each sale: materials, packaging, shipping, payment fees. The line can blur, so don't overthink it: put anything that tracks sales into variable cost, everything else into fixed.

What to do with your break-even number

Divide your break-even sales by 30 to get a daily target, then ask honestly whether that's realistic. If not, you have three levers: raise your price (usually the strongest move), cut variable costs by negotiating with suppliers, or trim fixed costs by starting leaner. Test each to see what gets you closest to a number you can hit.

Frequently asked questions

How do I calculate my break-even point?

Divide fixed costs by contribution margin (price minus variable cost). E.g., $2,000 fixed ÷ $20 margin = 100 sales a month.

What counts as a fixed cost and what as a variable cost?

Fixed costs stay the same regardless of sales (rent, salaries, insurance). Variable costs scale per sale (materials, shipping, fees).

Why must my price be higher than my variable cost per sale?

If a sale costs more than you charge, every extra sale loses money, and no volume can cover fixed costs. Raise price or cut per-sale cost to fix it.

How can I lower my break-even point?

Raise your price (usually strongest), cut variable costs (suppliers, packaging), or cut fixed costs (start lean, use less overhead).

Does this calculator work for service businesses?

Yes. Treat one “sale” as your billable unit (hour, session, project). Price is what you charge; variable cost is what delivering it costs you.

Do you store the numbers I enter?

No. It runs entirely in your browser: nothing is stored, sent, or shared. No sign-up required.

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