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Break-Even Calculator

Find out exactly how many units you need to sell to cover all costs and start making profit.

Inputs

$
$
$
units

Results

Break-Even Units

300

units to cover all costs

Break-Even Revenue

$22,500

in total sales needed

Contribution Margin

$50 / unit

66.7% margin ratio

Margin of Safety

25.0%

100 units above break-even

Cost vs Revenue

Break-Even0120240360480600Units$0$10k$20k$30k$40k$50kTotal CostsTotal Revenue

How it works

Break-even analysis tells you exactly how many units you need to sell to cover all your costs. Below that number, you lose money. Above it, every additional sale is pure profit (minus variable costs). It's the single most important number for pricing decisions.

The formula

Break-Even Units = Fixed Costs ÷ (Selling Price - Variable Cost per Unit) Contribution Margin = Selling Price - Variable Cost per Unit Margin of Safety = (Current Sales - Break-Even Sales) ÷ Current Sales × 100%

Why it matters for your business

Every business decision affects your break-even point. Hiring someone raises fixed costs. Changing your price shifts the entire equation. Understanding this relationship helps you make confident decisions about pricing, hiring, and expansion.

Pro tip

Most founders forget that break-even isn't just about units — it's about time. If you sell 10 units/day and need 500 to break even, that's 50 days of runway consumed. Connect this to your runway calculator for the full picture.

Get deeper insights with James FP&A

These calculators are just the start. Connect your accounting data and get automated financial analysis, forecasting, and real-time dashboards.