Free Break-Even Calculator
How many units do you have to sell before the business starts making money? Enter your fixed costs, price, and variable cost per unit - break-even units and sales update live, plus how many units reach a target profit. Free, no sign-up.
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The formula, with a worked example
Break-even units = fixed costs ÷ (price - variable cost per unit). The bottom half of that division is the contribution per unit: what each sale leaves behind after paying for itself.
Take a small distributor: rent and salaries of 500,000 a month, a product that sells at 5,000 and costs 3,000 to buy and deliver. Each sale contributes 2,000, so 500,000 ÷ 2,000 = 250 units a month just to stand still. Unit 251 is the first one that earns anything.
That number is worth knowing before you set sales targets, hire, or sign a bigger lease - each of those moves the break-even line, and this calculator shows by how much before you commit.
Break-Even Calculator FAQ
What is the break-even point?
The sales level at which total revenue equals total costs - below it you lose money, above it every extra sale is profit. It's expressed two ways: break-even units (how many you must sell) and break-even sales (the revenue that represents).
How is the break-even point calculated?
Break-even units = fixed costs ÷ (price per unit - variable cost per unit). Example: 500,000 in monthly fixed costs, selling at 5,000 with a 3,000 variable cost, gives 500,000 ÷ 2,000 = 250 units a month - which is 1,250,000 in sales.
What counts as a fixed cost vs a variable cost?
Fixed costs stay the same whether you sell 10 units or 1,000: rent, salaries, subscriptions, insurance. Variable costs scale with each sale: the product itself, packaging, delivery, payment processing fees, sales commission. If a cost grows when sales grow, it's variable.
What is contribution margin?
What each sale contributes toward fixed costs after its own variable costs: price minus variable cost. Selling at 5,000 with 3,000 variable cost, each unit contributes 2,000 - first toward rent and salaries, and once those are covered, straight to profit.
How do I lower my break-even point?
Three levers: raise the price, cut the variable cost per unit (better supplier terms, cheaper delivery), or cut fixed costs. Small changes compound - in the example above, raising the price by just 500 drops break-even from 250 to 200 units a month.
How do I know my real fixed costs?
Most owners guess low - they remember rent but forget subscriptions, bank charges, and insurance. A free Growpins Ledger account tracks operating expenses by category, so your P&L shows the real monthly figure to feed into this calculator.
Guessing your fixed costs?
A free Growpins Ledger account tracks your operating expenses by category and shows the real monthly figure in your P&L - so the number you feed this calculator is fact, not memory. Built by the team behind Growpins, founded by Dokun Bamigboye.
Know your real costs - sign up freeSetting the price side of the equation? Pair this with the Profit Margin Calculator, or browse all free tools.