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Break-Even Calculator

Find out exactly how much you need to sell before you start making money. Enter your fixed costs, your price, and your cost per sale, and see your break-even point in units and revenue.

Quick answer: Break-even is the sales volume where revenue equals total cost, so profit is zero: break-even units = fixed costs ÷ (price per unit − variable cost per unit). Below it you lose money; above it you profit. Enter fixed costs, price, and per-unit cost to find the exact sales you need.
Costs you pay regardless of sales — rent, insurance, software, base wages.
What you charge the customer for one unit or job.
What each sale costs you — materials, direct labor, transaction fees.
Break-even sales
Break-even revenue
Profit per sale (contribution)
Contribution margin

Estimate only — a planning tool, not a forecast. Assumes steady prices and costs; real months vary.

No sign-up No ads Runs in your browser — your numbers never leave your device

What "break-even" actually means

Your break-even point is the amount of sales where your money coming in exactly covers your money going out — zero profit, zero loss. Every sale after that starts making real profit. It's the single most useful number for setting goals and pricing.

Break-even sales = Fixed costs ÷ (Price − Variable cost)

The bottom part — price minus the cost of one sale — is your contribution margin: how much each sale contributes toward covering your fixed costs. The bigger it is, the fewer sales you need.

Two ways to lower your break-even

Break-even: the exact sales where you stop losing money

Break-even is the sales volume at which revenue exactly covers total cost, so profit is zero. Below it you lose money on every additional day open; above it, each sale drops profit to the bottom line. The formula is break-even units = fixed costs ÷ (price per unit − variable cost per unit). The denominator — price minus variable cost — is your contribution margin: what each sale contributes toward covering fixed costs.

Fixed vs. variable — the split that decides everything

Fixed costs do not move with sales in the short run: rent, insurance, salaried staff, software. Variable costs scale with each unit: materials, payment-processing fees, direct labor per job. Miscategorizing a cost is the most common break-even error — for example, treating a salaried manager as variable makes break-even look far lower than it is.

A worked example

A workshop has $4,000 a month in fixed costs, sells a product for $50, and spends $20 per unit in materials and fees. Contribution margin is $30. Break-even is $4,000 ÷ $30 = 134 units a month — about 5 a day. Want a $2,000 profit instead of zero? Treat the target profit like extra fixed cost: ($4,000 + $2,000) ÷ $30 = 200 units. That reframing — profit as a cost you must cover — is what turns break-even from a trivia number into a monthly sales target.

How to use it

Run break-even before launching a product, signing a lease, or hiring — anything that changes fixed costs moves the line. When margins are thin, notice how sensitive break-even is: a small price increase raises contribution margin and lowers required volume far more than cutting costs usually can.

Quick FAQ

How do you calculate break-even?

Divide your fixed costs by your contribution margin (price minus variable cost per sale). The result is the number of sales you need to cover all your costs. Multiply by price to get break-even revenue. This calculator does both.

What's a contribution margin?

It's what's left from one sale after its own direct costs — the amount that "contributes" to covering your fixed overhead and then profit. A $150 job that costs $60 in materials and labor has a $90 contribution margin.

Why does break-even matter for a small business?

It turns a vague "am I making money?" into a concrete target: hit this many sales and you're profitable. It also tells you fast whether a price is even viable — if break-even is more sales than you can realistically make, the price is too low.

Related: job estimate calculator · profit margin calculator · Small Business Bookkeeping template.

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More questions

Is the Break-Even Calculator free to use?

Yes. The Break-Even Calculator is completely free, runs in your browser, and never asks for a signup, email, or download. Enter your numbers and the result updates instantly.

How accurate is this calculator?

It uses standard formulas and recalculates the moment you change a value, so the math is exact for the inputs you enter. Treat the result as a reliable planning estimate; for decisions with legal or tax consequences, confirm the figures with a qualified professional.

Does it work on my phone?

Yes. The calculator is mobile-friendly and works on any phone, tablet, or computer — there is no app to install and nothing to save.

Can I add this calculator to my own website?

Yes. Scroll to “Add this free calculator to your site” above and copy the embed snippet to place the live calculator on your blog or website for free.

Last reviewed: September 2026. Free to use, no signup — Break-Even Calculator by ToolWise Digital.

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