Break-even calculator.

Calculate the exact units and revenue needed to cover all costs, your contribution margin, and your margin of safety. Free tool to set realistic sales targets and price for profitability.

Why break-even analysis matters.

Break-even is where total revenue equals total costs — no profit, no loss. Knowing that number turns gut-feel pricing into deliberate strategy.

  1. 01
    Set sales targets.Know exactly how many units you need to cover all costs — no guessing.
  2. 02
    Price with confidence.See how price changes shift the break-even point before you change a price tag.
  3. 03
    Measure risk.Margin of safety tells you how far sales can fall before you start losing money.
  4. 04
    Spot pricing problems.A low contribution margin means each sale barely covers itself — fix that before scaling.

Calculate your break-even point.

Costs that don't change with volume — rent, salaries, insurance, subscriptions.

Costs that scale per unit — materials, labor, shipping, processing fees.

Selling price per unit. Must exceed variable cost.

Use the same period for fixed costs and sales volume.

Units sold per period. Leave blank to skip margin-of-safety analysis.

Fixed vs. variable costs.

  1. 01
    Fixed costs.Stay the same regardless of volume — rent, salaries, insurance, software subscriptions, equipment leases.
  2. 02
    Variable costs.Scale with each unit sold — materials, direct labor, shipping, payment processing, packaging.

Contribution margin by industry.

Higher margin businesses need fewer sales to break even but typically carry higher fixed costs. SaaS sits at one extreme (high margin, high overhead); manufacturing sits at the other.

SaaS — High (engineering, hosting)70-85%
E-commerce — Medium (warehousing, platform)30-50%
Consulting — Low (mostly labor)60-75%
Manufacturing — Very High (facilities, equipment)25-40%
Restaurants — Very High (rent, labor, equipment)60-70%

Common break-even mistakes.

  1. 01
    Not including all fixed costs (overhead, insurance, subscriptions)
  2. 02
    Underestimating variable costs (shipping, payment processing, support)
  3. 03
    Using inconsistent time periods (monthly revenue with annual costs)
  4. 04
    Ignoring seasonal fluctuations in sales and costs
  5. 05
    Not updating break-even analysis as business scales
  6. 06
    Failing to separate fixed costs from variable costs correctly

How to lower your break-even point.

  1. 01
    Reduce fixed costs: negotiate rent, cut unused subscriptions, automate processes
  2. 02
    Lower variable costs: improve supplier terms, reduce waste, optimize shipping
  3. 03
    Increase prices strategically: test 10-15% price increases with new customers
  4. 04
    Improve product mix: focus on higher-margin products/services
  5. 05
    Increase average order value: upsells, bundles, premium tiers
  6. 06
    Boost sales volume: improve conversion rates, expand marketing channels
  7. 07
    Negotiate better payment terms with suppliers to improve cash flow

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Need a website that drives the sales you're calculating?

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Built by Taro Schenker — full-stack developer who works with startups and local businesses.