Break-Even Calculator
Find how many units you must sell each month to cover your fixed costs, what that is in sales revenue, and how long it takes to earn back your startup costs at the volume you expect. Enter your own numbers; the starting values are examples only.
Enter your numbers
The starting values are examples. Calculations stay in your browser.
At 80 units a month the operating result is $720.00, before owner pay, taxes and financing. Expected units are your scenario, not a forecast.
How the calculation works
- Contribution margin per unit = price − variable cost per unit.
- Contribution margin ratio = contribution margin ÷ price.
- Break-even units per month = fixed costs ÷ contribution margin, rounded up.
- Break-even sales per month = break-even units × price.
- Months to recover startup costs = startup costs ÷ (contribution margin × expected units − fixed costs), when that monthly result is positive.
The result is a planning scenario from the numbers you enter. It is not a forecast, a quote or tax advice.
Questions
What is a break-even point?
It is the sales level where total contribution from sales equals your fixed costs, so the monthly operating result is zero. Above it you make an operating profit; below it you make a loss.
Why does it say break-even is not reached?
Your price is equal to or lower than your variable cost per unit, so each sale adds nothing toward fixed costs. Raise the price or lower the variable cost.
Does break-even include startup costs?
The monthly break-even point covers only monthly fixed costs. The payback line shows separately how many months of profit at your expected volume repay your startup costs.
Can I put this calculator on my website?
Yes. Copy the embed code on this page. The embedded version keeps a small credit link to BizAI.
Embed this calculator
Add this free calculator to your blog, course or client resources. Paste the code into an HTML block. It is free to use and keeps a small credit link to BizAI.
Use it with a real business idea
Each of our business idea guides loads this kind of calculator with an example budget and price for that business. Other free tools: Small Business Profit Calculator.