Break-Even Point Calculator
Find the exact unit and revenue volume where your business covers its costs.
Rent, salaries, software, insurance — costs that don't move with sales.
COGS, payment fees, fulfillment, per-seat infra.
The break-even point is the volume where total revenue equals total cost — zero profit, zero loss. Everything you sell above it is contribution to profit. Everything below is a loss.
Run this before launching a new product, raising prices, or hiring. It surfaces whether your unit economics actually work.
Break-even units = Fixed costs ÷ (Price − Variable cost)
The denominator is your contribution margin per unit — how much each sale puts toward covering fixed costs.
Most businesses fail not because their product is bad, but because they don't know how many units a month they need to sell. Once you know the number, you know whether your marketing, sales, or pricing plan is realistic.
Worked examples
$8,000/mo fixed costs, $49 price, $12 variable cost per user. Break-even: 217 paying users generating $10.6k MRR.
$15,000/mo fixed, $4.50 avg ticket, $1.20 variable. Break-even: ~4,546 customers/mo ≈ 152/day.
- Forgetting owner salary in fixed costs.
- Mis-classifying variable costs as fixed (payment processing, shipping).
- Using gross price instead of net price after discounts and refunds.
- Assuming linear demand — pricing changes shift unit volume too.
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Frequently asked questions
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