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Break-Even Calculator

Find out how many units you must sell to cover fixed costs, and how many to reach a profit goal.

Last reviewed 2026-11-09

Your numbers

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Results

Contribution margin per unit
$20.00
Contribution margin ratio
40%
Break-even units
250
Break-even revenue
$12,500

Results update as you type.

Estimates for planning only. This is not tax, legal or financial advice. Read the full disclaimer.

The break-even formula

Break-even units equal fixed costs divided by contribution margin per unit. Contribution margin is price minus variable cost. If your fixed costs are $5,000 a month, you charge $50 and the variable cost per sale is $30, each sale contributes $20, so you need 250 sales to break even. That is $12,500 of revenue.

To reach a profit target, add the target to the fixed costs before dividing. If the contribution margin is zero or negative, no number of sales will cover your costs, and the calculator tells you so.

Margin of safety

If you enter the number of units you currently sell, the calculator shows your margin of safety: the percentage by which sales can fall before you start losing money. A larger margin of safety means a more resilient business.

Using it for freelancers and creators

Fixed costs might be software subscriptions, equipment payments and insurance. Variable costs might be platform fees, contractors or materials per sale. You can also treat a service package as a unit. Use the platform fee calculator to estimate variable costs per sale accurately.

Frequently asked questions

What are fixed costs and variable costs?

Fixed costs stay the same however much you sell, such as rent and subscriptions. Variable costs rise with each sale, such as materials and fees.

What is contribution margin?

The price minus the variable cost per unit. It is the amount each sale contributes toward fixed costs and profit.

Why is break-even always rounded up?

You cannot sell part of a unit, so the calculator rounds up to the next whole unit.

What if my price is lower than my variable cost?

Then each sale loses money. You need to raise the price or reduce the variable cost.

What is a break-even example?

With $2,000 of monthly fixed costs, a $40 price and $15 of variable cost per unit, each sale contributes $25, so you need 80 sales, or $3,200 of revenue, to break even.

How do I lower my break-even point?

Raise your price, cut variable costs per unit or reduce fixed costs. Each change moves the number of sales you need.

What is a margin of safety?

The percentage your sales can fall before you start losing money.