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Break-Even Calculator

The exact sale count where you stop bleeding money.

Every product business lives or dies at one number: how many units you must sell before fixed costs are covered. This calculator computes that break-even point from three inputs — fixed costs, sale price, and variable cost per unit — and shows the contribution margin that determines it. Change any input to test pricing decisions before you commit to them.

Why people use this

Before launching a product, signing a lease, or buying equipment, one number decides whether the plan can work at all. People use this to kill bad business ideas in five minutes (cheaply) and to price new products against reality instead of optimism.

How it works

  1. Enter fixed costs: rent, salaries, software — costs that exist even at zero sales.
  2. Enter your sale price per unit.
  3. Enter variable cost per unit: materials, shipping, payment fees — costs that scale with each sale.
  4. Break-even units = fixed costs ÷ (price − variable cost), shown with revenue and margin.

Common questions

What is contribution margin?

Price minus variable cost per unit — the amount each sale contributes toward covering fixed costs. A $49 product costing $14 to fulfill contributes $35 per sale. Every pricing and cost decision flows through this number.

What if my price barely exceeds my costs?

Then break-even units explode toward infinity, which is the calculator telling you the business model needs a price rise or a cost cut, not more effort. Thin margins mean volume cannot save you.

Should fixed costs be monthly or annual?

Either works — just interpret the result in the same period. Monthly fixed costs give you break-even units per month, which is usually the most actionable frame.

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