Break-Even Analysis Calculator
Find the exact number of units or billable hours your business must sell to cover all costs and start turning a profit.
About this calculator
Break-even analysis tells you the minimum sales volume needed to cover all costs — the point where total revenue equals total costs and profit is exactly zero. Below that point every sale loses money; above it every additional unit generates profit equal to the contribution margin. The formula is: Break-Even Units = Fixed Costs ÷ Contribution Margin Per Unit, where Contribution Margin = Selling Price − Variable Cost. The chart plots revenue and total cost against units sold, with the shaded zone showing where you're operating at a loss. The milestone table shows profit or loss at 25% intervals up to 150% of break-even so you can see how quickly the business becomes profitable at scale.
Field explanations
- Monthly fixed costs
- Costs that don't change with sales volume: rent, insurance, loan payments, software subscriptions, salaries for non-production staff, and legal/accounting retainers. These must be paid whether you sell zero or a thousand units.
- Variable cost per unit
- Costs that scale directly with each unit sold or hour billed: materials, direct labor, payment processing fees, shipping, and commissions. For a service business, this is the cost of delivering one billable hour.
- Selling price per unit
- The revenue you receive for one unit sold or one hour billed. Must be higher than the variable cost — the difference is the contribution margin, which is what actually pays down fixed costs.