Calculate how many units you need to sell, how much revenue you need, and how much profit you can make before and after breaking even.
This is a single-product planning estimate. Price, variable cost, and mix can change with volume—use it to test a scenario, not as financial advice.
The break-even point is the sales volume where total revenue equals total costs. Below that volume you operate at a loss. Above it, each extra unit adds profit equal to the contribution margin.
This tool is a break-even analysis calculator for one product, SKU, seat, or service engagement—or a simplified average unit. Enter fixed costs, variable cost per unit, and selling price. It returns break-even units, break-even revenue (sales needed to break even), contribution margin, and contribution margin ratio. Optional fields add target-profit volume, expected profit, and margin of safety.
Break-even units = Fixed costs ÷ (Selling price − Variable cost per unit). Break-even revenue = Break-even units × Selling price.
Add the costs that stay the same for the period you are analyzing—rent, salaries, insurance, software, or loan payments. Use all monthly or all annual figures.
Enter the cost that rises with each unit sold: materials, packaging, shipping, payment fees, or commissions. Use cost per unit, not total variable spend.
Enter the price you actually receive for one unit, product, seat, or engagement. Price must be higher than variable cost.
Target profit shows how many units you need beyond break-even. Expected units show expected profit and margin of safety.
Use exact units for the math and the rounded whole-unit count for a sales target. Break-even revenue is the matching dollar figure.
The calculator uses the contribution-margin method for a single product or averaged unit. All math runs locally in your browser.
Formula
Contribution margin per unit = Selling price − Variable cost per unit
Contribution margin ratio = Contribution margin ÷ Selling price
Break-even units = Fixed costs ÷ Contribution margin per unit
Break-even revenue = Break-even units × Selling price
(or Fixed costs ÷ Contribution margin ratio)
Units for target profit = (Fixed costs + Target profit) ÷ Contribution margin
Expected profit = Expected units × Contribution margin − Fixed costs
Margin of safety units = Expected units − Break-even units
Margin of safety % = (Expected units − Break-even units) ÷ Expected units × 100
Required selling price at a target volume = Variable cost + Fixed costs ÷ Target units
Example: Fixed $10,000 · Variable $5 · Price $15
→ Contribution margin $10 · Ratio 66.7% · Break-even 1,000 units · Revenue $15,000Input
Fixed costs $8,000/month · Variable cost $1.20 per cup · Selling price $4.50Output
Contribution margin $3.30 · Break-even 2,424.24 cups (2,425 whole cups) · Revenue $10,909.09$8,000 ÷ ($4.50 − $1.20) = 2,424.24 cups. You must sell 2,425 cups in the month to cover costs. That is about 81 cups per day in a 30-day month.
Input
Fixed costs $2,500 · Variable cost $18 (COGS + shipping + fees) · Selling price $45Output
Contribution margin $27 · Break-even 92.59 units (93 whole units) · Revenue $4,166.67Fold payment fees and shipping into variable cost so “how many units do I need to sell to break even?” stays realistic.
Input
Fixed costs $4,000/month · Variable cost $12 · Selling price $29.99Output
Contribution margin $17.99 · Break-even 222.35 units (223 whole units) · Revenue $6,668.15Use the landed cost per unit, not just the wholesale invoice, if freight or packaging is extra.
Input
Fixed costs $12,000/month · Variable cost $6.50 per plate · Selling price $18Output
Contribution margin $11.50 · Break-even 1,043.48 plates (1,044 whole plates) · Revenue $18,782.61Estimate food cost per plate first—then treat rent, kitchen labor, and utilities as fixed costs for the period.
Input
Fixed overhead $3,000/month · Variable cost $200 per project · Price $1,200 per projectOutput
Contribution margin $1,000 · Break-even 3 projects · Revenue $3,600Treat each billed engagement as a unit. Set the fee with the Freelance Rate Calculator, then confirm volume covers overhead here.
Input
Fixed burn $20,000/month · Variable cost $4/seat · Price $29/seat · Target profit $5,000Output
Break-even 800 seats · Units for $5,000 profit: 1,000 seats($20,000 + $5,000) ÷ $25 = 1,000 seats. This is single-plan unit economics, not a multi-tier sales mix.
How break-even units, revenue, contribution margin, and margin of safety differ.
| Result | What it answers | Formula |
|---|---|---|
| Break-even units | How many units to break even | Fixed costs ÷ contribution margin |
| Break-even revenue | Sales needed to break even | Break-even units × price |
| Contribution margin | What each sale leaves after variable cost | Price − variable cost per unit |
| Margin of safety | How far expected sales sit above break-even | Expected units − break-even units |
Whole units are rounded up. Exact units stay available for the revenue math.
The two cost types the break-even formula needs.
| Input | Changes with volume? | Examples |
|---|---|---|
| Fixed costs | No, for the period you chose | Rent, salaried payroll, insurance, software |
| Variable cost per unit | Yes — one more unit, one more increment | Materials, shipping, payment fees, commissions |
| Selling price per unit | Held constant in this model | Unit price, seat price, or project fee |
Small business
Enter rent, payroll, and a typical ticket to see how many sales cover the month before you add staff or inventory.
Ecommerce
Treat one listing as the unit. Put COGS, pick/pack, and platform fees in variable cost, then read units and revenue to break even.
Retail
Use launch or shelf costs as fixed, landed cost as variable, and the real average selling price—not an optimistic list price.
Food service
Pair a per-serving food cost with monthly rent and labor. The Meal Cost Calculator helps estimate the variable cost first.
Services
Each project is a unit. Once the fee is set, this page answers how many engagements you need in the period.
SaaS
Use seats or subscriptions as units and hosting or support as variable cost. Run one representative plan, not a blended mix, unless you average it on purpose.
Step-by-step chains that connect related tools for common tasks.
Set a margin-based price, then test whether demand can cover costs.
Rate floor first, then the number of projects that cover overhead.
Per-serving cost into cups or plates.
Use this page for break-even units, sales revenue, contribution margin, target profit, and margin of safety. Nearby tools cover pricing, discounts, food cost, and freelance rates.
| Related tool | Use this tool when | Use related tool when |
|---|---|---|
| Profit Margin Calculator | You need break-even units, break-even revenue, target-profit volume, or margin of safety from fixed and variable costs. | You need profit margin %, markup %, or a selling price for a target margin. |
| Percentage Calculator | You are running full cost-volume-profit math. | You only need a percentage, percent change, or quick markup helper. |
| Discount Calculator | You are finding the volume that covers costs at a given price. | You are applying a sale discount to a list price. |
| Meal Cost Calculator | You already know food cost and need cups or plates to cover overhead. | You need ingredient cost per serving before you set a menu price. |
| Freelance Rate Calculator | You already have a project price and need engagements to cover overhead. | You need a minimum hourly or project fee from income, expenses, and billable hours. |
Include the full period overhead—not only product cost. Rent, software, and salaried labor still have to be covered.
The denominator is contribution margin per unit. A total variable-cost figure will inflate the break-even point.
If price ≤ variable cost, extra sales increase the loss. Raise price or cut variable cost; volume will not save the model.
Keep fixed costs, target profit, and expected units on the same period.
Contribution margin is price minus variable cost. Profit margin % is profit ÷ price—use the Profit Margin Calculator for that.
Units answer “how many.” Revenue answers “how many dollars of sales.” Both appear in the results.
Discounts, promotions, and payment fees change the real contribution. Model the average selling price you keep.
Ecommerce and card-not-present sales often hide several dollars per order. Put those in variable cost per unit.
This calculator is single-unit economics. Average one representative unit or run a separate scenario per product. It does not compute a weighted-average contribution margin.
Use the Profit Margin Calculator for margin and markup. Use this page for the volume and revenue that cover costs.
Overtime, volume discounts, taxes, and demand changes need a fuller model. Treat these results as a first-pass planning estimate.
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It is the sales volume where total revenue equals total costs and profit is zero. This calculator reports it as break-even units and break-even revenue.
Divide fixed costs by contribution margin per unit (selling price minus variable cost). The result is how many units you must sell to break even.
Multiply break-even units by selling price, or divide fixed costs by the contribution margin ratio. Both equal the sales dollars needed to break even.
Break-even units = Fixed costs ÷ (Selling price − Variable cost per unit). Break-even revenue = Break-even units × Selling price.
Contribution margin per unit is selling price minus variable cost per unit. It is the amount from each sale that goes toward fixed costs and then profit.
It is contribution margin divided by selling price. A 66.7% ratio means 66.7 cents of every sales dollar is available to cover fixed costs and profit.
Margin of safety is how far expected sales sit above break-even, in units, dollars, and percent of expected units. It is a business planning measure, not an investment valuation cushion.
Enter fixed costs, variable cost per unit, and selling price. The primary result is that unit count, with a whole-unit rounding for a practical sales target.
Contribution margin is zero or negative, so you cannot break even by selling more. The calculator explains that you need a higher price or a lower variable cost.
Yes. It is built for a single product, ticket, or average sale plus period overhead—the usual small-business planning question.
Yes. Treat each project, retainer, or billed package as a unit. Fixed costs are overhead; variable costs are direct costs per engagement.
Yes, as long as every input uses the same period. Do not mix monthly rent with an annual profit target.
Not as a full sales-mix model. Use an average unit or run one scenario per product. Weighted-average contribution margin is out of scope here.
No. Results are pre-tax planning estimates. Tax-adjusted targets need extra assumptions and, for decisions, an advisor.
Yes. It is free to use. Calculations run in your browser, and the values you enter are not uploaded for the calculation.
Fixed costs, prices, and volume inputs are calculated locally in your browser. They are not uploaded to EverydayTools servers for the calculation.
Real businesses face changing prices, semi-variable costs, and demand limits. These results are planning estimates—not financial, tax, or accounting advice. Financial results are estimates for planning only — not tax, legal, or investment advice. Verify with your employer, institution, or a qualified professional.
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Reviewed by EverydayTools Editorial Team on 2026-09-20.
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