Break-Even Analysis Calculator
Calculate how many units you need to sell to break even. Essential for business planning and profitability analysis.
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Break-Even Point
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What is break-even?
Break-even is the point where total revenue equals total costs — you're making no profit or loss. Beyond break-even, every unit sold contributes to profit.
How do I calculate break-even?
Break-Even Units = Fixed Costs ÷ (Price per Unit − Cost per Unit). The denominator is your profit margin per unit. For example, if fixed costs are $10K, price is $100, and cost is $60, break-even is 10,000 ÷ 40 = 250 units.
What are fixed costs?
Fixed costs are expenses that don't change with sales volume: rent, salaries, insurance, software subscriptions. They stay the same whether you sell 1 unit or 1,000.
How long does it take to reach break-even?
Divide break-even units by your average monthly sales volume. If you need 500 units and sell 100/month, it takes 5 months to break even.