Break-even Calculator

It is the sales volume at which total revenue equals total cost, so profit is zero. Sell one unit more and you are in profit; one fewer and you are at a loss.

Fixed costs stay the same regardless of how much you sell — rent, salaries, software, insurance. Variable costs rise with each unit — materials, packaging, per-sale fees, shipping. Getting this split right is what makes the result meaningful.

It is price minus variable cost — the amount each sale contributes toward fixed costs. Until fixed costs are covered it pays them down; after break-even, each unit’s contribution is pure profit.

You cannot sell a fraction of a product, and selling the rounded-down number would leave you just short of covering costs. Rounding up gives the first whole-unit level at which you are genuinely break-even or better.

Then every sale deepens the loss and no volume can ever break even. The tool tells you this instead of showing a negative or infinite number — the fix is a higher price or a lower variable cost.

Use net (pre-VAT) figures throughout, since VAT is collected on behalf of the state and is not part of your revenue. Mixing gross and net values distorts the contribution margin.

No — break-even is the zero-profit point. To hit a profit target, add that target to your fixed costs before calculating: the units then cover costs plus the profit you want.

Three levers: raise the price, cut the variable cost per unit, or reduce fixed costs. Each increases the contribution per sale or shrinks what must be covered, so fewer units are needed.

No. The calculation runs entirely in your browser; nothing you enter is uploaded or stored.