Break-Even Point Calculator

Total Fixed Costs ($) (Rent, Salaries, etc.) Sales Price Per Unit ($) Variable Cost Per Unit ($) (Materials, Labor)

Units to Break Even

You need to sell this many units to cover all costs.

Fixed vs. Variable Costs

To calculate your break-even point accurately, you must separate your costs. Fixed Costs are expenses you pay regardless of sales (Rent, Insurance, Salaries). Variable Costs happen only when you sell an item (Materials, Shipping, Commission). If you mix these up, your pricing strategy will fail.

How to Lower Your Break-Even Point

If the number above seems too high to achieve, you have two options:

Raise your prices: This increases the margin per unit, meaning you need to sell fewer units to cover the rent.
Cut fixed costs: Moving to a cheaper office or reducing software subscriptions lowers the hurdle you have to jump every month.