Break-Even Calculator: Units and Sales Needed

What this calculator can help you understand

How many units you need to sell each month to cover your costs.
The sales that represents.
What each sale contributes toward fixed costs.
What it takes to reach a profit target.

When it’s useful

Before launching a product or business.
When changing prices.
When taking on a new fixed cost, like a lease or a hire.
When writing a business plan or loan application.

Who it’s for

Founders and small business owners.
Makers and online sellers pricing products.
Anyone deciding whether an idea can pay for itself.

What to enter

Input	What it means	Where to find it
Fixed costs per month	Costs that don’t change with sales	Rent, payroll, subscriptions and insurance bills
Price per unit	What you charge for each unit	Your price list
Variable cost per unit	Costs that come with each sale	Supplier invoices, shipping and payment fees
Profit target per month	Profit you want beyond break-even	Your plan; optional

How to use it

Enter your monthly fixed costs.
Enter your price and variable cost per unit.
Read the units and sales needed to break even.
Optionally, add a profit target.
Use the table to see profit or loss at different volumes.

Understanding your results

Contribution per unit = price − variable cost.
Contribution margin = contribution ÷ price.
Units to break even = fixed costs ÷ contribution per unit, rounded up.
With a target = (fixed costs + target) ÷ contribution per unit.

A worked example

Suppose your fixed costs are $10,000 a month, you sell a product for $50, and each one costs $30 to make and ship.

Contribution: $20.00 per unit, a 40.0% contribution margin.
Break-even: 500 units a month, or $25,000 in sales.
To earn $4,000 a month: 700 units.
At 600 units: a profit of $2,000. At 400 units: a loss of $2,000.
Levers: a $55 price lowers break-even to 400 units; cutting variable cost to $25 lowers it to 400.

Common mistakes

Leaving out costs. Payment fees, returns and your own pay are easy to forget.
Assuming fixed costs never change. They often step up as you grow.
Ignoring demand. A break-even point is only useful if you can realistically sell that much.
Mixing monthly and yearly figures.

What to do with your result

Compare break-even volume with what you’ve actually sold.
Check your pricing with the profit margin calculator.
If you’re not there yet, see how long your cash lasts with the business runway calculator.

Limitations to keep in mind

The calculator assumes a steady price, constant variable costs per unit and fixed costs that don’t change with volume. It doesn’t include taxes, financing costs or seasonal swings. This isn’t accounting or business advice.

Frequently asked questions

What is a break-even point?

The sales volume at which revenue exactly covers all costs, so profit is zero. Below it you lose money; above it you make money.

What are fixed and variable costs?

Fixed costs stay the same whatever you sell, like rent and salaries. Variable costs rise with each unit sold, like materials, shipping and payment processing fees.

What is contribution margin?

Price minus variable cost per unit: what each sale contributes toward fixed costs and profit. In our example, it’s $20.00 per unit, or 40.0% of the price.

How can I lower my break-even point?

Raise prices, cut variable costs, or cut fixed costs. In our example, raising the price from $50 to $55 lowers break-even from 500 to 400 units.

What if I sell many products?

Use your average price and average variable cost across your sales mix, or calculate each product line separately with its share of fixed costs.

Should I include my own pay?

Yes, if you need the business to pay you. Include it in fixed costs, or as a profit target.

Break-even calculator: how much you need to sell before you make money