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Break Even Calculator

Break Even Calculator

break even calculator Calculate how many units you need to sell to cover costs and reach break-even.

Use this free break-even calculator to estimate break-even units, contribution margin, and revenue before launching or pricing a product.

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Break-even units

66.67

Contribution margin

$18.00

Break-even revenue

$2,000.00
A break-even calculator helps you understand how many units you need to sell before revenue covers your costs. This is one of the simplest ways to test whether a product, offer, or campaign has enough room to become profitable.

The calculation starts with fixed costs, selling price per unit, and variable cost per unit. Fixed costs include expenses that do not change directly with each sale, such as software, rent, salaries, or subscriptions. Variable costs include the costs tied to each unit sold, such as production, packaging, or fulfillment.

Once you compare selling price with variable cost, you get contribution margin per unit. That margin shows how much each sale contributes toward covering fixed costs. The break-even point tells you how many units must be sold before profit begins.

This tool is especially useful for ecommerce sellers, operators, and marketers who need to review a new price, product launch, or sales target. It turns a vague question like whether a product can work into a clearer numeric target that can be discussed and tested.

How to use it

Step 1

Enter your total fixed costs for the period you want to evaluate.

Step 2

Add the selling price per unit and the variable cost per unit.

Step 3

Review contribution margin, break-even units, and break-even revenue before setting targets.

FAQ

What is break-even point?

The break-even point is the level of sales where total revenue equals total costs, so profit is zero.

Why is contribution margin important?

Contribution margin shows how much each unit sold contributes toward fixed costs after variable costs are covered.

When should I use a break-even calculator?

Use it when pricing a product, setting sales targets, or evaluating whether a campaign or new product can realistically become profitable.

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