Break-even Calculator
Find how many units you need to sell to cover your costs, and how many more to reach your profit goal.
- Break-even sales
- $20,250.00
- Units for target profit
- 750
- Contribution per unit
- $20.00
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How to use the break-even calculator
- Enter your fixed costs for the period, such as rent, software, salaries and insurance.
- Enter your selling price and the variable cost of each unit, including product, packaging, shipping and fees.
- Add a target profit to see how many units you need to reach it.
Break-even formulas
Units are rounded up, because you cannot sell part of a unit. If variable cost is equal to or higher than price, you can never break even.
Example
A brand has 9,000 in monthly fixed costs, sells at 45 and spends 25 per unit in variable costs. Each sale contributes 20, so it breaks even at 450 units, or 20,250 in sales. To make 6,000 profit it needs 750 units.
Why break-even matters
Break-even turns a vague goal into a daily target. If you need 450 units a month, you need about 15 a day. It also shows how sensitive you are to price: a small price rise can cut the units you need by a lot.
How to lower your break-even point
Raise prices, cut variable costs like shipping and packaging, reduce fixed costs, or focus on products with higher contribution. Check the effect of each change with this calculator before you act.
Frequently asked questions
How do I calculate break-even point?
Divide fixed costs by the contribution per unit, which is price minus variable cost.
What are fixed costs?
Costs that stay the same however much you sell, like rent, software subscriptions and salaries.
What are variable costs?
Costs that rise with every unit sold, like product cost, packaging, shipping and payment fees.
Should I include ad spend?
If you pay a fairly steady ad cost per order, add it to variable costs. A fixed monthly ad budget can go in fixed costs.
What is break-even sales?
The revenue at which total profit is zero: break-even units multiplied by price.
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