Break-Even Calculator

Break-Even Calculator finds the point at which sales exactly cover all costs, neither profit nor loss, from your fixed costs, variable cost per unit, and selling price, expressed in both units and revenue.

The maths centres on contribution margin: price minus variable cost per unit, which is what each sale contributes toward fixed costs. Break-even units are simply fixed costs divided by that margin, so a higher contribution margin (from a higher price or lower variable cost) directly lowers the number of units you must sell.

It's a sharp tool for pricing decisions. Cutting your price shrinks the contribution margin, which can sharply raise the volume needed to break even, revealing why a 'sell more by charging less' plan often backfires unless the extra volume genuinely appears. Modelling the shift before committing prevents a costly mistake.

Remember break-even shows the sales required to avoid a loss, not whether that volume is achievable, so always sanity-check it against realistic demand and your cash runway. Everything runs in your browser, keeping figures private. Pair it with the Profit Margin, ROI, and other ToolsMonk business calculators.