Tool
Break-even Calculator
Estimate how many units or how much revenue you need to cover costs.
Summary
Break-even units = Fixed costs ÷ (Price − Variable cost). Break-even revenue = Fixed costs ÷ Gross margin %.
Contribution/unit
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Break-even units
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Break-even revenue
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Interpreting
If break-even units are close to or above realistic sales capacity, you have a pricing / cost problem. Raise price, reduce variable cost, or cut fixed cost.
Uses
- New product / service viability
- Setting launch-period sales targets
- Justifying a price increase
- Stress-testing budgets
Frequently asked questions
Works for services?
Yes — treat a billable hour or project as a unit.
Next step
Keep exploring related resources to strengthen this area of the business.
See Profit Margin CalculatorPhase 2 content slot (ads / affiliate)