Alp SuleimanGrowth Partner

Break-Even Point Calculator

How far above the break-even bar are your sales, and which of fixed cost, price or variable cost lowers the bar most when each improves by the same percentage? (For the first, just enter your current sales.) Enter your monthly fixed costs, unit price and unit variable cost. See the sales volume and revenue needed to turn a profit and the volume for your target profit.

Tool 13 / 15

Break-Even Point Calculator

Inputs

Price and costs

Currency

$

Rent, salaries, subscriptions: costs you pay even with no sales.

$

Average price excluding VAT, after discounts.

$

Product cost, shipping, fees — costs created by each sale.

Goal and current state
$

What you want left over after fixed costs.

units

For margin of safety. Leave 0 if unknown.

Result

Monthly break-even units: 750

Monthly break-even units

750

$37,500 in revenue; about 25 sales a day.

You're above break-even

Current sales clear the bar by 150 units (16.7%) and leave $3,000 a month in profit. A sales drop larger than that puts you in the red.

Unit contribution margin

$20

What each sale contributes to fixed costs.

Contribution margin ratio

40%

Share of revenue left for fixed costs and profit.

Units for target profit

1,000

For $5,000 a month in profit; $50,000 in revenue.

Margin of safety

16.7%

Monthly result at current sales: $3,000.

Revenue and total cost

$0$20K$40K$60K$80K03757501.1K1.5K
RevenueTotal cost

Horizontal axis: monthly units sold. Where the lines cross is break-even; right is profit, left is loss.

Which lever lowers the bar most? (10%)

Which lever lowers the bar most? (10%)
LeverNew break-evenDifference
Price up 10%600-20%
Unit cost down 10%653-13%
Fixed costs down 10%675-10%

All else equal. The table ignores how a price rise affects volume; measure that with small tests.

Share this result

Results are estimates based on the values you enter, not investment or financial advice. The calculation runs in your browser and no separate request is made to send your numbers. The values you enter are written into the link in the address bar.

Formula

  • Unit contribution margin

    Price − Unit variable cost

  • Break-even units

    Fixed costs ÷ Unit contribution margin

  • Break-even revenue

    Fixed costs ÷ Contribution margin ratio

    Contribution margin ratio = Unit contribution margin ÷ Price

  • Margin of safety

    (Current sales − Break-even sales) ÷ Current sales × 100

How to read the result

Break-even volume is a floor, not a goal. Every month below it, you pay fixed costs out of pocket. The daily figure makes it concrete: 750 units a month is about 25 sales a day. Can your team and channels realistically produce that?

Margin of safety shows how far sales can fall before you slip into a loss. If it's thin, a seasonal dip or losing one big customer can push you negative. That's a good reason to delay decisions that raise fixed costs — new hires, office space, long contracts.

The lever table compares the effect of the same improvement on break-even. A price increase flows entirely into contribution margin, so it's often the strongest lever, and stronger still when margins are thin. But price also affects volume, so validate with small tests.

If contribution margin is zero or negative, there is no break-even point: selling more only deepens the loss. Fix price or unit cost first; volume helps only after that.

The model assumes a single or average product. With several products, use a weighted average price and cost based on your sales mix; break-even shifts as the mix changes. Enter prices excluding VAT or sales tax.

Frequently asked questions

How do you calculate the break-even point?

Divide fixed costs by unit contribution margin, which is price minus unit variable cost. With 15,000 in monthly fixed costs, a price of 50 and variable cost of 30, unit contribution is 20 and break-even is 15,000 ÷ 20 = 750 units.

What is the difference between fixed and variable costs?

Fixed costs are paid every month regardless of volume: rent, salaries, software subscriptions. Variable costs rise with each sale: product cost, shipping, payment fees, sales commission. If you're unsure, ask whether the cost would halve if sales halved.

How do you find break-even revenue?

Divide fixed costs by the contribution margin ratio. With a 40% ratio, 15,000 in fixed costs needs 15,000 ÷ 0.40 = 37,500 in revenue. For businesses selling many products, revenue-based break-even is usually more practical.

What is margin of safety?

It's how far current sales exceed break-even sales, as a percentage. If you sell 900 units and break even at 750, your margin of safety is 16.7%: a drop larger than that puts you in the red.

How can I lower my break-even point?

Three ways: raise price, lower unit variable cost or cut fixed costs. The lever table in the calculator compares how much the same improvement in each would lower the bar, so you can see where to start.

Let's read the story behind the numbers together.

Let's pin down which metric is really limiting your growth and which lever to pull first.

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