Break-Even Calculator

Frequently Asked Questions

What is the break-even point?

The break-even point is the number of units you must sell for total revenue to equal total costs (fixed + variable). Below it you're losing money; above it you're profitable. It's calculated as: Fixed Costs ÷ (Selling Price − Variable Cost per Unit).

What counts as a fixed cost vs a variable cost?

Fixed costs stay the same regardless of how many units you produce — rent, salaries, insurance, software subscriptions. Variable costs change with production volume — raw materials, packaging, per-unit shipping, transaction fees. Some costs are semi-variable (utilities, overtime pay).

What is contribution margin?

Contribution margin is the selling price minus the variable cost per unit. It represents how much each sale 'contributes' toward covering your fixed costs and generating profit. A higher contribution margin means you reach break-even faster.

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