Break-Even Analysis Calculator
Find out exactly how many units you need to sell to cover operating expenses and start making a net profit.
Financial Inputs
Rent, insurance, salaries, software, marketing
Price charged to customer for 1 product or service hour
Direct materials, shipping, transaction fees per unit
How much profit you want to achieve each month
Must sell to reach zero profit/loss
Total monthly gross sales volume
Per unit toward fixed costs
Of price kept after variable costs
To make $2,000/mo profit
Sales Volume vs. Net Profit Scenario Matrix
See your exact net profit or loss across different monthly unit sales volumes.
| Sales Volume | Total Revenue | Total Costs | Net Profit / Loss | Status |
|---|
How to Interpret Your Break-Even Analysis
Your break-even point is the milestone where total revenues equal total business costs. At this point, your profit is exactly zero. Every unit sold past your break-even volume generates pure net operating profit.
Break-Even Units Formula
Fixed Costs ÷ (Price - Variable Cost)
Contribution Margin Formula
Selling Price - Variable Cost
3 Ways to Lower Your Break-Even Volume
- Increase your selling price: Even a 5% to 10% price increase dramatically expands your contribution margin.
- Negotiate variable costs: Seek bulk discounts from suppliers or optimize packaging to reduce per-unit expense.
- Cut recurring fixed overhead: Audit monthly SaaS subscriptions, office rent, and recurring retainers.