Your break-even point is the number of sales at which revenue exactly covers your costs: no profit, no loss. Knowing it tells you the minimum you need to sell each month and whether a price works.
Use the same period for everything (for example one month).
Contribution margin per unit = price − variable cost per unit
This is what each sale contributes toward covering fixed costs.
Break-even units = fixed costs ÷ contribution margin per unit Break-even revenue = break-even units × price
Round units up: you can't sell part of a unit.
Illustrative numbers only: fixed costs $3,000 a month, price $50, variable cost $20.
Contribution margin = 50 − 20 = $30 Break-even units = 3,000 ÷ 30 = 100 Break-even revenue = 100 × 50 = $5,000
To set a price that hits a target margin, use the profit margin and markup calculator.
Not financial or tax advice. This simple model assumes one product (or an average) and a constant price and cost per unit.
Break-even units = fixed costs ÷ (price − variable cost per unit); break-even revenue = break-even units × price.
Fixed costs stay the same however much you sell in a period (rent, software, insurance); variable costs rise with each sale (materials, packaging, payment fees, shipping).
Raise the price, cut variable costs to increase the contribution margin, or cut fixed costs.
Skip the math: the free Break-Even Calculator does this in your browser. Nothing is uploaded.