Break-Even Calculator

Find out how many units you need to sell to cover your costs. Enter your fixed costs, price, and variable cost to see your break-even point instantly.

Every new product, market stall or side business starts with the same question: how much do I have to sell before I stop losing money? Until you pass that point, every sale is still paying off the rent, the equipment and the stock you bought to get started. After it, every sale starts to earn. The break-even point is that turning point — and knowing it before you start helps you set a price, plan your stock and decide whether an idea is worth pursuing at all.

What is a break-even calculator?

A break-even calculator works out how many units of a product you must sell to cover all your costs. It uses three numbers: your fixed costs (the costs that stay the same whatever you sell, such as rent), your selling price per unit, and your variable cost per unit (what each item costs you to make or buy).

For example, if your fixed costs are $1,000, you sell each item for $25 and each item costs you $15, then each sale contributes $10 towards your fixed costs. Divide $1,000 by $10 and you get 100 — you need to sell 100 items to break even. The formula is: break-even units = fixed costs ÷ (selling price − variable cost per unit).

What you can use it for

• Starting a business: check whether a new product or stall can realistically cover its costs.
• Setting a price: see how a higher or lower price changes the number of sales you need.
• Planning stock: work out how many units to order or make in the first place.
• Testing an idea: compare two products or two prices and see which one breaks even sooner.
• Monthly targets: turn a monthly cost into a clear sales target for the month.

How it works

Using this free break-even calculator is simple:

1. Enter your Fixed costs in dollars.
2. Enter your Selling price per unit.
3. Enter your Variable cost per unit.
4. See your break-even point — the number of units you need to sell — instantly.

Frequently asked questions

Is this calculator free?

Yes, it is completely free to use, with no account or sign-up needed.

What counts as a fixed cost?

Fixed costs are the costs you pay whether you sell one item or a hundred: rent, insurance, website hosting, equipment and licences. Variable costs change with each sale: materials, packaging, delivery and payment fees for each unit.

What if my price is lower than my variable cost?

Then you lose money on every sale, and no amount of sales will cover your fixed costs — you can never break even. In that case the price has to go up, or the variable cost has to come down, before the business can work.

Is my data saved anywhere?

No. The calculation happens in your browser, on your own device, and the numbers you enter are not sent to us or stored.

Good to know

• Break-even is a starting point, not a goal — after it, every extra sale is profit, so the real target is selling comfortably past it.
• A calculator result is an estimate based on the numbers you enter. Double-check important figures before making a business decision, and do not rely on it alone for financial or tax decisions.
• To check the profit on each sale, use the Profit Margin Calculator. To work out the price to charge, use the Markup Calculator.

Related tools

Try the Profit Margin Calculator, Markup Calculator or Freelance Hourly Rate Calculator, or browse all free tools on VerySimple.