Determine your break-even point by entering your fixed costs, variable cost per unit, and selling price. See exactly how many units you need to sell to cover all expenses and start making a profit.
The break-even point is the volume at which a business stops losing money and starts making it. It's the most important single number in early-stage planning: if you can't articulate how many units, hours, or subscriptions you need to sell to cover your costs, you can't tell whether your business model works.
This calculator walks the standard break-even math: fixed costs divided by contribution margin per unit. Enter your monthly fixed costs (rent, salaries, software, insurance — anything that doesn't change with sales volume), the variable cost per unit (materials, fulfillment, payment processing — anything that scales with each sale), and the selling price. The calculator returns the break-even unit count, break-even revenue, and the contribution margin percentage.
Add an "expected monthly units" forecast and the calculator also shows your projected profit (or loss) at that volume — a quick reality check on whether your sales target actually clears the cost stack.
Fixed costs: $14,000/mo (rent, baristas, insurance, depreciation) Variable cost per cup: $1.20 (beans, milk, cup, lid) Price per cup: $5.00 CM per cup: $3.80 Break-even: 14,000 / 3.80 ≈ 3,684 cups/mo ≈ 123/day A coffee shop selling 150 cups/day clears about $1,000/mo profit. At 100 cups/day, the shop loses about $2,600/mo. The model is highly volume-sensitive — even small foot traffic shifts move the bottom line dramatically.
Fixed costs: $40,000/mo (engineers, hosting baseline, marketing) Variable cost per customer: $5/mo (per-customer hosting + support) Price per customer: $79/mo CM: $74/customer/mo (94% margin) Break-even: 40,000 / 74 ≈ 541 customers At 600 customers: profit = (600 × 74) − 40,000 = $4,400/mo At 1,000 customers: profit = $34,000/mo High contribution margin means small volume increases drive large profit moves — typical SaaS economics.
Use break-even analysis early and often: business plan, pricing changes, considering a new fixed cost (like hiring), evaluating a price discount or promotion. Any decision that changes fixed costs, variable costs, or price should be re-tested against break-even.
Limitations: - Assumes a single product/service or a stable mix - Treats all fixed costs as truly fixed, even though "stepped" costs (the next employee, the next office) shift discontinuously - Ignores cash timing — break-even is an accounting concept, not a cash flow one - Doesn't model seasonality
For multi-product businesses, run break-even per product line or use a weighted-average contribution margin. For early-stage cash planning, combine break-even with the cash flow and burn rate calculators.
Calculate gross, operating, and net profit margins from your revenue and costs.
Project your business cash flow, burn rate, and runway over time.
Estimate total startup costs and identify your funding gap.
Calculate the debt service coverage ratio to evaluate loan qualification and financial health.
Estimate your business value using revenue multiples and discounted cash flow methods.
Calculate COGS and gross profit to understand your product profitability.
Break-Even Units
250
Break-Even Revenue
$8,750.00
Contribution Margin
$20.00
Expected Profit
$1,000.00
| Units | Revenue | Total Cost | Profit/Loss |
|---|---|---|---|
| 0 | $0.00 | $5,000.00 | $-5,000.00 |
| 25 | $875.00 | $5,375.00 | $-4,500.00 |
| 50 | $1,750.00 | $5,750.00 | $-4,000.00 |
| 75 | $2,625.00 | $6,125.00 | $-3,500.00 |
| 100 | $3,500.00 | $6,500.00 | $-3,000.00 |
| 125 | $4,375.00 | $6,875.00 | $-2,500.00 |
| 150 | $5,250.00 | $7,250.00 | $-2,000.00 |
| 175 | $6,125.00 | $7,625.00 | $-1,500.00 |
| 200 | $7,000.00 | $8,000.00 | $-1,000.00 |
| 225 | $7,875.00 | $8,375.00 | $-500.00 |
| 250 | $8,750.00 | $8,750.00 | $0.00 |
| 275 | $9,625.00 | $9,125.00 | $500.00 |