The break-even point is the sales level where your total revenue equals your total costs. At this point, your business has made neither a profit nor a loss.

Break-even units are calculated by dividing your fixed costs by the contribution you make on each unit. The contribution per unit is your selling price minus your variable cost per unit.

Fixed costs are expenses that generally remain the same regardless of how many products or services you sell. Examples include rent, insurance, salaries, software subscriptions, and other recurring business expenses.

Variable costs change based on the number of units you sell or produce. Examples include product costs, packaging, transaction costs, and certain shipping or production expenses.

Contribution per unit is the amount left from each sale after subtracting the variable cost of that unit from its selling price. This amount contributes toward covering fixed costs and eventually generating profit.

If your selling price is equal to your variable cost, each sale contributes nothing toward your fixed costs. In that situation, the business cannot reach a traditional break-even point through additional unit sales alone.

Break-even calculations can produce a decimal number, but you normally cannot sell a fraction of a physical unit. The calculator therefore rounds the required units up to the next whole number so you know the minimum number of units needed to cover your costs.

Break-even revenue is the amount of sales revenue you need to generate to cover your fixed and variable costs. Once your revenue exceeds this level, you can begin generating a profit, assuming your cost assumptions remain accurate.

Yes. The calculator can be used for ecommerce stores, online services, retail businesses, freelancers, product businesses, and many other situations where you can estimate fixed costs, variable costs, and selling prices.

Yes. Our break-even calculator is free to use and does not require registration. Enter your business figures to estimate your break-even units, break-even revenue, contribution margin, and projected profit or loss.