About This Tool
The Break-Even Calculator finds the exact number of units you need to sell and the revenue required to cover all your costs and start making a profit.
Frequently Asked Questions
What is the break-even point?
The break-even point is when total revenue equals total costs — you are neither making a profit nor a loss. Any sales beyond this point generate profit.
What are fixed vs variable costs?
Fixed costs stay constant regardless of production (e.g. rent, insurance). Variable costs change with the number of units produced (e.g. raw materials, packaging).
What is contribution margin?
Contribution margin is the selling price per unit minus variable cost per unit — it represents how much each unit sold contributes toward covering fixed costs.