Business Planning Tool

Break-Even Calculator

Turn fixed costs and unit economics into a clear monthly sales target.

Break-even signal
Fixed costsMonthly base
÷
Unit marginPrice − variable
=
UnitsTo break even

Enter your numbers

How to use this tool more powerfully

Start with the default values, calculate once, then change one assumption at a time. This makes it easier to see which input actually changes the business decision.

Your result

Break-even units334
Break-even revenue501,000
Units for target profit501
Contribution margin40.0%
Volume signal
units
Break-even units = fixed costs ÷ contribution per unit. If price is not above variable cost, there is no break-even point under this simple model.

Calculation basis

From fixed costs to a sales target

Contribution per unit = selling price − variable cost. Break-even units = fixed costs ÷ contribution per unit. Target-profit units = (fixed costs + target profit) ÷ contribution per unit.

Calculation flow

Inputs→Formula / assumptions→Result→Useful context

Source & scope

Standard contribution-margin / break-even arithmetic; no external regulatory source is required.

Assumptions & limits

  • Fixed costs are treated as monthly.
  • Variable cost is treated per unit.
  • If contribution per unit is zero or negative, break-even cannot be reached with the selected price/cost structure.
ScopeSales target / pricing
JurisdictionGeneral business planning
Last reviewedOctober 2026
Why differentTransparent by design

Why this tool is different

It converts a spreadsheet-style formula into a practical sales target and shows the economic logic behind it.

How it works

Know how many sales the business needs

Break-even turns a monthly cost structure into a concrete sales target. It is particularly useful for new products, service packages, shops and subscription-style businesses.

Why this tool exists

Once a business knows its break-even point, pricing and automation decisions become easier to quantify — exactly the kind of practical business intelligence we want this tool ecosystem to provide.

Talk to us about automation →

Questions

Frequently asked questions

What is break-even?

Break-even is the point where total contribution covers fixed costs and profit is zero.

What is contribution per unit?

It is selling price minus variable cost per unit.

What if variable cost is higher than selling price?

The model cannot reach break-even because each sale loses money before fixed costs are recovered.