Break-Even Calculator

The break-even point is the number of units you must sell (or revenue you must generate) to cover all your fixed and variable costs. At the break-even point, your business makes neither a profit nor a loss. Total revenue equals total costs. Knowing this helps you set realistic sales targets and pricing strategies.

The break-even formula is: Fixed Costs ÷ (Selling Price per Unit - Variable Cost per Unit). For example, if your fixed costs are $5,000/month, variable cost is $20/unit, and selling price is $50/unit, your break-even is 5,000 ÷ (50 - 20) = 167 units. Use the calculator above for instant results.

Fixed costs are expenses that stay the same regardless of sales volume: rent, salaries, insurance, software subscriptions. Variable costs change with each unit sold: raw materials, packaging, shipping, per-unit labor. Understanding both is essential for accurate break-even analysis.

Contribution margin is the amount each sale contributes to covering fixed costs and generating profit. It equals Selling Price minus Variable Cost per Unit. A higher contribution margin means you need fewer sales to break even. The contribution margin ratio (margin ÷ price × 100) shows the percentage of each sale that goes toward fixed costs and profit.

Dewx integrates your sales, CRM, and operations data in one platform. Track revenue, monitor expenses, and see real-time profitability dashboards. Our AI assistant Dew can help analyze your break-even performance and suggest pricing optimizations based on actual customer data. Join the beta to unlock full financial visibility across your business.