Break-Even Calculator
Calculate your break-even point — the number of units or revenue needed to cover all costs and start generating profit.
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Break-Even Point (Monthly)
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Break-Even Revenue
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Contribution Margin
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Contribution Margin %
Understanding Break-Even
Break-even is where total revenue equals total costs. Below this point, you're losing money. Above it, every additional sale generates profit. Fixed costs don't change with volume (rent, salaries, insurance). Variable costs increase with each unit (materials, shipping, commissions). Contribution margin = Price − Variable Cost. This is how much each sale contributes toward covering fixed costs. The higher your contribution margin, the fewer units needed to break even. Set your prices using our Margin & Markup Calculator. For freelancers, check our Freelance Rate Calculator.
Frequently Asked Questions
How do I lower my break-even point?
Three ways: reduce fixed costs, increase price, or reduce variable costs. Even small changes compound — a $5 price increase with the same costs can cut break-even by 20%.
What if I sell services, not products?
Replace "price per unit" with your hourly/project rate and "variable cost" with your direct cost per engagement. Fixed costs remain the same.