Free tool

Break-even calculator

Your monthly fixed costs, your price and what each unit costs you. How many you have to sell before the business stops losing money.
Units to break even
100 units
Revenue to break even
US$5,000.00
Contribution per unit
US$30.00

How it is calculated

Contribution per unit = price − variable cost per unit.

Break-even units = fixed costs ÷ contribution, rounded up — half a unit cannot be sold.

If the price does not exceed the variable cost, there is no break-even point: every sale loses money.

Questions

What counts as a fixed cost?

Anything you pay whether or not you sell: hosting, software subscriptions, rent, salaries, insurance. Advertising is usually treated as fixed per month, though it is the first thing worth testing as variable.

What is contribution margin?

What each sale leaves after paying for itself — the price minus the variable cost. It is what pays the fixed costs, and once those are covered, it is profit.

How do I lower my break-even point?

Raise the price, cut the variable cost per unit, or cut fixed costs. A price rise usually moves it fastest, because all of it goes to contribution.

If you run WooCommerce

WooFinance tracks contribution per order in WooCommerce, so the break-even point is something you watch rather than estimate once a year. WooFinance is our plugin; the calculator above works the same whether you use it or not.

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