The break-even point is the number of sales where your income equals your costs. Enter your fixed costs, your price and what each sale costs you to deliver, and this free calculator shows how many sales you need to cover your costs, and to reach a profit target.
| Revenue needed | – |
| Profit per sale (contribution) | – |
| Contribution margin | – |
How it works
Contribution per sale = price − variable cost. Break-even sales = fixed costs ÷ contribution per sale, rounded up to a whole sale. To reach a profit target, add the target to the fixed costs before dividing.
Fixed costs stay the same however much you sell. Variable costs rise with each sale.
Worked example
Fixed costs are 5,000. You sell for 50 and each sale costs 20 to deliver, so each sale contributes 30. You break even at 5,000 ÷ 30 = 166.7, so 167 sales, or 8,350 in revenue.
Tips
- List every fixed cost, including your own time if you want a true picture.
- Raising your price by a small amount can cut break-even sales a lot. Test it with the profit margin calculator.
- Work out break-even before you launch a new product or service.
Frequently asked questions
What is a break-even point?
It is the level of sales where total income equals total costs, so profit is zero.
What is the difference between fixed and variable costs?
Fixed costs do not change with sales, such as rent. Variable costs change with each sale, such as materials or payment fees.
Why round up?
You cannot sell part of a sale, and selling one fewer would leave you just short of covering costs.
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This calculator is for general guidance only. Check important figures yourself.