How to Use the Break-even Calculator

The Break-even Calculator helps business owners and entrepreneurs figure out how many units of a product or service they need to sell to cover their costs – before making a profit.

You enter three numbers:

1️⃣ Fixed Costs – Expenses that stay the same (e.g., rent, salaries). If you want a monthly break-even point, use monthly fixed costs.  If you want an annual break-even point, use annual fixed costs.

2️⃣ Variable Cost per Unit – Costs that change per product sold (e.g., materials, labor).

3️⃣ Selling Price per Unit – How much you charge for each product.

The calculator then tells you the exact number of units you need to sell to break even –  meaning your total revenue matches your total costs.