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
Break-even units
Break-even revenue

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 Calculator
Phase 2 content slot (ads / affiliate)