Discover the exact point where selling becomes profitable. Calculate your break-even point instantly.
You need to sell this many units to cover all costs.
Profit made per unit after variable costs.
The break-even point is the level of production or sales at which total revenue equals total costs. At this point, the business is neither making a profit nor a loss.
Knowing this number is crucial for any business plan. It tells you exactly the minimum performance required to survive. Any sale made beyond the break-even point contributes directly to profit.
Break-Even Units = Fixed Costs / (Price - Variable Costs)
Expenses that remain constant regardless of sales volume. Examples: Rent, insurance, subscription software, salaries.
Expenses that change in proportion to production output. Examples: Raw materials, packaging, shipping, sales commissions.