It is the most useful early-stage business calculation. Compare a few pricing scenarios in seconds to see which one makes the numbers work, and how many sales you need before the lights come on.
Calculator
Formula used
Break-even units = fixed ÷ (price − variable) · Break-even revenue = units × price
How to use the Break Even Point Calculator
- Enter the fixed costs that do not change with sales (rent, salary, software).
- Set the price per unit and the variable cost per unit (materials, packaging).
- Type the units you expect to sell in a typical month.
- Read the break-even point, the margin of safety and the expected profit.
About this tool
The Break Even Point Calculator is built for speed and accuracy: every calculation runs in your browser, so your data never leaves your device and the result updates as you type. It works equally well on a phone, a tablet or a desktop, and it is free to use as many times as you like.
Common use cases
- Pricing a new product before launch.
- Comparing two product lines for the same fixed overhead.
- Working out the minimum sales needed to cover rent.
- Sizing a marketing budget to clear the break-even line.
Tips for the best result
- Use the latest figures you have - even a small change in rate or term can shift the outcome by hundreds.
- For annual figures, divide by 12 to get a monthly number you can compare with the result.
- Bookmark this page and revisit the calculation as the inputs change.
Frequently asked questions
What counts as a fixed cost?
Anything that does not change with sales volume: rent, salaried staff, software subscriptions, insurance. Materials and shipping are usually variable because they scale with units.
What is the margin of safety?
The gap between expected sales and the break-even point, expressed in units or as a percentage. A margin of safety above 25% is a healthy buffer for a small business.
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