Business Break-Even Calculator

How this calculator works

Every sale contributes a little toward covering your fixed costs — that contribution is your price minus the variable cost of delivering one unit. Break-even is the point where enough of those contributions have added up to cover your fixed costs exactly; every sale after that is profit.

Note: this measures a business's break-even point in unit sales — a different question from a trader's breakeven price on a single position.

Getting your numbers right

• Fixed costs — rent, salaries, software, insurance: costs that don't change with how much you sell. Use a monthly figure.
• Price per unit — what a customer actually pays.
• Variable cost per unit — materials, packaging, payment processing, shipping: costs that scale directly with each sale.

Using the result

If your break-even number feels out of reach at your current sales pace, you have three levers: raise the price, lower the variable cost per unit, or cut fixed costs. Small price increases often move the number more than people expect, since the entire increase drops straight into your margin.

This model excludes one-time startup costs (equipment, initial inventory, licensing) — it measures ongoing monthly profitability, not how long it takes to recoup your original investment.