Comprehensive Guide
Learn more in our Business & Tax Guide.
How it works
Break-even analysis tells you the minimum sales needed to cover all costs — the point where you stop losing money and start making profit. The formula is: fixed costs divided by (price per unit minus variable cost per unit). For example, with $15,000 monthly fixed costs, $50 price per unit, and $20 variable cost per unit: $15,000 / ($50-$20) = 500 units. Your break-even revenue is $25,000/month. Below 500 units, you lose money. Above 500, you profit. This calculator helps you set sales targets, evaluate pricing changes, and decide whether a new product is viable. Every business should know its break-even number. Every field in this calculator exists for a reason. Enter Fixed Costs (monthly), Price per Unit, Variable Cost per Unit, Break-Even Units, Break-Even Revenue, and the engine recomputes the results instantly — no signup, no email, and nothing is sent to a server, because the math runs entirely in your browser. Change one input at a time to see which lever moves the result most; that sensitivity, not any single number, is usually the real insight. The worked example below the form uses realistic defaults so you can sanity-check the output before trusting it with your own figures, and the formula is published on the page so you can verify every step of the arithmetic yourself.Tips
- Start with the default values to see a baseline result, then change one input at a time to understand which factor matters most for your outcome.
- Replace every default with your actual number — estimates and rules of thumb produce estimates, not answers. Pull your real figures from pay stubs, statements, or account dashboards.
- Run the numbers quarterly, not annually. Tax brackets, revenue, and expenses shift throughout the year, and adjusting early is far cheaper than correcting at year-end.
Frequently asked questions
How many units to break even?
$15K fixed costs / ($50-$20) margin = 500 units/month. Revenue: $25,000/month to break even.
What does the break-even point calculator calculate?
It takes fixed costs (monthly), price per unit, variable cost per unit as inputs and computes break-even units, break-even revenue. The primary output is break-even units. Calculate how many units or how much revenue you need to break even.
How accurate are the calculator results?
The math is exact — the same formulas a financial professional would use by hand. The precision of the output depends entirely on how realistic your inputs are. Use your actual numbers rather than estimates when possible. The defaults are reasonable starting points, but your real income, rates, and timeline will produce a different result.