Break-Even
Calculate break-even point for your business
Calculators on this site provide estimates for general informational purposes only. They are not financial, investment, tax, or legal advice. Consult a qualified professional before making any decision.
How to use Break-Even
- 1Enter fixed costs (rent, salaries—costs that don't vary with volume).
- 2Enter unit variable cost and unit price, or per-unit profit.
- 3See the break-even quantity, the matching revenue, and a safety-margin hint.
Break-even: fixed vs variable costs
break-even qty = fixed cost ÷ (price − unit variable cost)The break-even point is the 'no profit, no loss' volume where total fixed costs are covered by per-unit contribution margin (price − variable cost).
Higher fixed costs or lower per-unit profit raise the break-even point and the risk. Discounting boosts volume but raises the point, needing more sales to recover.
This tool answers 'how many must I sell to not lose money'—useful before opening a shop, launching a product, or taking a project.
Frequently asked questions
Fixed vs variable cost?
Fixed stays flat with output (rent, salary, subscriptions); variable moves with volume (materials, packaging, per-order shipping). Clear split gives accurate margin.
Does discounting raise or lower break-even?
Usually raises it. Lower price → lower per-unit profit → more units needed to cover fixed costs.
What is safety margin?
The amount actual sales exceed break-even. Bigger margin means more cushion against falling sales without loss.
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