Break-even Analysis Calculator
How many units you have to sell before the business starts making money rather than losing it.
—
How it works
Every unit sold contributes price minus variable cost towards the fixed costs of being in business. Break-even is simply the point where those contributions have covered the fixed costs entirely — everything after that is profit.
The margin of safety matters as much as the break-even point itself. It measures how far current sales sit above the line, and therefore how much of a downturn the business can absorb before it starts losing money.
Break-even units = fixed costs ÷ (price − variable cost)
- Fixed costs — costs that do not change with volume — rent, salaries, software
- Contribution — price less variable cost, the amount each sale puts towards fixed costs
- Margin of safety — how far current sales exceed the break-even point
Worked example
850,000 of fixed costs, selling at 1,200 with a 480 variable cost, currently selling 1,500 units
Inputs
Results
Sales could fall 21% before the business starts losing money. Under 20% is generally considered uncomfortable.
Frequently asked questions
Which costs count as fixed?
Those that do not move with volume in the short run: rent, permanent salaries, insurance, software subscriptions, loan payments. Anything that rises with each unit sold is variable and belongs in the other field.
What is a healthy margin of safety?
Above 30% is comfortable, 20–30% workable, below 20% precarious — a modest downturn or a lost customer tips you into losses. Seasonal businesses should be measured at their weakest point, not their average.
How do I lower my break-even point?
Three levers, in order of typical impact: raise the price, cut variable costs, cut fixed costs. Because the price change affects the contribution directly, small increases move the break-even point further than most people expect.
Is my data sent anywhere?
No. The calculation runs entirely in your browser. Nothing you type is transmitted to us or stored.
More in Margin & Pricing
Profit Margin Calculator
Turn revenue and cost into profit, margin and markup — the three numbers a pricing decision usually hinges on.
BusinessGross Margin Calculator
Split revenue across every layer of cost and see gross, operating and net margin separately — three very different measures of the same business.
BusinessPricing & Markup Calculator
Start from the margin you need and work back to the price — the direction pricing decisions actually run.
BusinessDiscount Impact on Margin
Before you run that promotion: how much more do you have to sell just to end up where you started?
BusinessPrice Increase Calculator
The mirror image of a discount: how many customers can you afford to lose when you raise prices?
BusinessContribution Margin Calculator
When capacity is the constraint, the most profitable product is rarely the one with the best margin. This ranks by contribution per hour of the bottleneck.