Home›Free Tools›Break-Even Calculator — Know the Minimum Sales You Need to Survive
Business Tool — Break-Even Point Calculator
Break-Even Calculator — Know the Minimum Sales You Need to Survive
Calculate your break-even point in units and revenue. Know exactly how many units you need to sell each month to cover all your costs and start making a profit.
If you currently sell 1,200 units/month, Margin of Safety = 1,200 − 750 = 450 units (37.5%)
When to Use This Calculator
Evaluate whether a new product launch is viable at a given price point
Set monthly sales targets for store staff
Decide if you should reduce fixed costs (move to smaller premises) or increase prices
Assess the financial risk of opening a new store location
Calculate how many units a new distributor needs to sell to be profitable
Frequently Asked Questions
The break-even point is the level of sales at which total revenue equals total costs, resulting in zero profit or loss. Above this point, every unit sold contributes to profit.
Fixed costs remain the same regardless of sales volume — rent, salaries, insurance. Variable costs change with production or sales volume — raw materials, packaging, commissions.
Contribution Margin = Selling Price − Variable Cost per Unit. Break-Even = Fixed Costs ÷ Contribution Margin. The contribution margin tells you how much each unit sold contributes toward covering fixed costs.
If your break-even is very high, you may need to increase your selling price, reduce variable costs, or reduce fixed costs. It helps you set the floor price below which selling at any volume still results in a loss.
Margin of Safety = Actual Sales − Break-Even Sales. It shows how much sales can fall before you start making a loss. Higher margin of safety means lower business risk.
