Calculate how many units you need to sell to cover all costs and start making profit. Know exactly when your business becomes profitable.
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Enter your costs and pricing to see how many units you need to sell
To reach break-even, you need to sell these units every month. Any sales beyond this number are pure profit!
Learn how to calculate and reach your break-even point faster
The point where total revenue equals total costs - you're neither making profit nor losing money. Every sale after this point is pure profit.
Fixed costs stay the same (rent, salaries, software). Variable costs change with sales volume (product cost, shipping, payment fees).
The profit per unit after variable costs. Higher contribution margins mean you reach break-even faster with fewer sales.
Reduce fixed costs, lower variable costs through negotiation, increase prices, or improve conversion rate to sell more units.
Common questions about break-even analysis
The break-even point is when total revenue equals total costs. You're not making profit, but you're not losing money either. It's calculated by dividing fixed costs by contribution margin (selling price minus variable cost per unit).
Fixed costs don't change with sales volume: rent, salaries, software subscriptions, insurance, equipment leases, and utilities. These must be paid regardless of how much you sell.
Variable costs change with each sale: product/wholesale cost, shipping to customer, payment processing fees, packaging materials, and sales commissions. These only occur when you make a sale.
Four ways: (1) Reduce fixed costs (cheaper software, negotiate rent). (2) Lower variable costs (better supplier rates). (3) Increase prices. (4) Improve product mix to sell higher-margin items.
Generally yes - it means you reach profitability faster and have less risk. However, strategic investments in fixed costs (better tools, team) can increase sales enough to justify higher break-even.
Monthly minimum, or whenever costs change significantly. Recalculate when: supplier prices change, you adjust selling prices, add new fixed costs (software/team), or change business model.
Calculate weighted average contribution margin across products. Multiply each product's margin by its sales percentage, then sum them. Use this average in the break-even formula.
Yes! Our calculator supports 9 major currencies including USD, EUR, GBP, CAD, AUD, NGN, ZAR, KES, and GHS. Your currency preference saves automatically.
Knowing your break-even point is step one. We help you build conversion-optimized stores that reach profitability faster.
