Break-Even Calculator
Find the exact number of units you need to sell to cover all your costs and start generating profit.
Break-Even Analysis
What Is Break-Even Analysis?
Break-even analysis tells you the minimum sales volume needed to cover all your costs — the point where total revenue equals total costs and profit is exactly zero. Every unit sold beyond the break-even point generates pure profit. This free break-even calculator is essential for business planning, pricing strategy, and financial forecasting in 2026.
Fixed vs. Variable Costs
Fixed costs stay constant regardless of how much you sell: rent, salaries, software subscriptions, insurance, and loan repayments. Variable costs change directly with production volume: raw materials, packaging, shipping costs, and payment processing fees. Understanding this distinction is the foundation of profitability analysis.
Contribution Margin Explained
The contribution margin is selling price minus variable cost per unit. It represents how much each sale contributes toward covering your fixed costs and eventually generating profit. A higher contribution margin means you reach break-even with fewer sales — and profit scales faster beyond it.
Using Break-Even to Set Prices
If your break-even point is too high relative to your realistic sales volume, you have two levers: raise your price or reduce your costs. Often a 10–15% price increase has a dramatic effect on the break-even point because the contribution margin improves without changing your fixed cost structure.