Business Planning Tool

Break-Even Calculator

Work out exactly how many sales you need to cover your costs — and start making real profit.

Step 1

What type of business?

Choose the model that best matches what you sell. You can switch any time.

Step 2

Pricing & unit costs

Enter the average price you charge and what it costs you to deliver each sale.

$
$
Contribution margin per unit
$30
60% margin
Step 3

Fixed costs

Overheads you pay regardless of how many sales you make — rent, salaries, software, insurance, etc.

Total fixed costs (monthly) $0
Step 4

Target profit (optional)

How much profit do you want to make each year? We'll tell you how many sales you need.

$

The break-even point

Your break-even point is the level of sales where your total revenue exactly covers your total costs. Below it, you're losing money. Above it, you're making profit.

The formula

Break-even units = Fixed costs ÷ Contribution margin per unit

Contribution margin = Price per unit − Variable cost per unit

Every unit you sell above break-even contributes its full margin straight to profit, because your fixed costs are already covered.

Product vs service businesses

The maths is identical — only the language changes. A product business thinks in units sold, a service business thinks in billable hours or jobs delivered. Both need to cover the same fixed costs.

  • Product business: Variable cost is usually meaningful — materials, manufacturing, shipping.
  • Service business: Variable cost is often small or zero — your main cost is the fixed salary you're already paying yourself or your team.

Why this matters

Knowing your break-even helps you price correctly, set sales targets, and understand the impact of cost changes. It's one of the first numbers every business owner should know by heart.

Your break-even point

Sales needed just to cover costs

Break-even per year
0
units sold annually
Per month
0
Per week
0
Per day
0
Break-even revenue (annual) $0
Annual fixed costs $0
Contribution margin per unit ? The amount each sale contributes toward covering fixed costs. Above break-even, this becomes pure profit. $0
Gross margin % 0%
Gross margin health 0%
< 20% thin 40–60% solid > 70% strong

Cost vs revenue visualisation

The point where the lines cross is your break-even.

Revenue Total costs Fixed costs

🎯 To hit your profit target

Based on your annual profit target of $100,000

You need to sell 0 units/yr
Which is revenue of $0/yr
Per month 0

Not sure about your numbers?

Great break-even analysis starts with knowing your real costs. Our team can help you map it out properly.

Book a Free Discovery Call