Business & SaaS

Break Even Point

How many units must you sell to cover all costs and reach zero profit?

Break-even analysis is the foundation of every pricing and costing decision. It tells you the minimum volume needed to avoid a loss. Below this point you lose money; above it you make money.

Enter your numbers

Fixed Costs per Month ($)

Rent, salaries, software — costs that do not change with volume.

Unit Selling Price ($)

Variable Cost per Unit ($)

Materials, shipping, transaction fees per unit sold.

Results update as you change the inputs. Calculations run in your browser.

Break-Even Volume

167 units

revenue: $8,350
contribution Margin: $30.00
margin Percent: 60.0%

See the formula

Formula and method

Break-Even Units = Fixed Costs / (Price - Variable Cost)

Contribution margin (price minus variable cost) is the amount each sale contributes toward covering fixed costs. Once fixed costs are covered, each additional unit is pure profit.

Worked examples

SaaS startup

Fixed Costs per Month ($):: 8000
Unit Selling Price ($):: 79
Variable Cost per Unit ($):: 3

Break-Even Volume: 106 units

Physical product business

Fixed Costs per Month ($):: 15000
Unit Selling Price ($):: 120
Variable Cost per Unit ($):: 45

Break-Even Volume: 200 units

Assumptions and limits

Linear cost and revenue functions
Single product model
No economies of scale

This tool provides an educational estimate. Rules, rates and personal circumstances can change the answer. Review the assumptions before relying on a result. Report a correction.

Common mistakes to avoid

Treating salaries as variable costs — unless directly tied to production volume, salaries are fixed.
Forgetting payment processing fees in variable costs — they reduce contribution margin on every sale.
Not updating the model when prices or costs change — break-even shifts with any pricing change.

Frequently asked questions

What is contribution margin?

Contribution margin is the selling price minus all variable costs per unit. It represents how much each unit "contributes" to covering fixed costs. A higher contribution margin means you break even faster.

How do I reduce my break-even point?

Three levers: raise prices, lower variable costs, or lower fixed costs. Price increases are often the most powerful because they improve contribution margin without increasing volume.