Break Even Calculator
Launching a new product or service? Use our Break Even Calculator to find out exactly how much you need to sell to cover your costs and start making a profit.
What Is
Break-even analysis determines the point at which total revenue equals total costs, meaning your business neither makes a profit nor incurs a loss. It is a critical metric for pricing strategy and financial planning.
How to Use
- Enter your fixed costs (rent, salaries, insurance, etc.)
- Input the variable cost per unit (materials, labor, shipping)
- Set your selling price per unit
- Click Calculate to see your break-even point in units and revenue
- Review the profit analysis for different sales volumes
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Frequently Asked Questions
What is a break-even point?
The break-even point is when your total revenue equals your total costs. Below this point you lose money; above it you make a profit.
Why is break-even analysis important?
It helps you set realistic sales targets, price products appropriately, and understand your cost structure before launching.
Can I calculate break-even for services?
Yes. For services, treat billable hours as units and calculate your hourly cost plus desired margin.
How often should I recalculate?
Recalculate whenever your costs or prices change, or at least quarterly for growing businesses.
What is the contribution margin?
It is the selling price minus variable cost per unit, the amount each sale contributes toward covering fixed costs.