Business Calculator
Break-Even Point Calculator
Find out exactly how many orders you need to pay your bills and start making a profit.
Calculate Break-Even Point
Enter fixed costs, selling price, and unit variable cost to calculate your break-even point.
Fixed Costs
$0.00Unit Variable Costs
$0.00Fixed costs are period costs. Unit variable costs are per-unit costs used for the contribution margin.
Calculate the minimum sales volume needed to cover fixed costs at your current price and unit cost.
Break-Even Sales: $0.00
Want to make $ profit?
Calculate first to see required units.Print or save a clean break-even summary after reviewing the result.
How It Works & Use Cases
What Is a Break-Even Point?
For e-commerce sellers, online store owners, wholesale traders, and small business teams, knowing your break-even point is the first step toward sustainable profit. It shows the sales volume where total revenue equals total costs, so you can see how many orders you need before a product, service, or ad campaign starts making money.
How to Calculate Break-Even Units
The calculator uses fixed costs, selling price, and unit variable cost to find how many units you need to sell before your sales cover your costs. This is useful for pricing products, checking profit margin, planning inventory, and deciding whether a sales target is realistic.
- Break-even units = fixed costs / (selling price - unit variable cost)
- Break-even sales = break-even units x selling price
- Profit per unit = selling price - unit variable cost
How to Lower Your Break-Even Point
If your break-even point feels too high, start with the biggest levers: reduce monthly fixed costs, negotiate better wholesale or supplier pricing, improve shipping and packaging costs, raise your selling price, or improve your ad conversion rate so each marketing dollar creates more orders.
When to Use It
Use this tool before ordering inventory, changing prices, adding a new product, quoting a B2B trading order, planning an automotive parts offer, or setting monthly sales targets. It gives you a simple view of the minimum volume needed before a product or business line starts contributing profit.
FAQ
What is a break-even point?
The break-even point is the sales level where total revenue equals total costs. For an online store, wholesale order, or small business product, it tells you how many units you need to sell before profit starts.
How do I calculate break-even units?
Break-even units are calculated as fixed costs divided by contribution margin per unit. Contribution margin per unit is selling price minus unit variable cost.
What is break-even sales?
Break-even sales are the total revenue needed to reach break-even. This calculator multiplies break-even units by selling price.
What should I do if my break-even point is too high?
Start by checking the biggest cost drivers. You can lower break-even units by reducing fixed costs, finding better supplier or freight rates, improving ad efficiency, increasing selling price, or bundling products to raise average order value.
Are fixed costs monthly or per order?
In this calculator, fixed costs are monthly or period costs such as rent, labor, software, insurance, and marketing overhead. Unit variable costs are per-unit costs such as materials, packaging, shipping, and commissions.
Why does selling price need to be higher than variable cost?
If selling price is equal to or lower than unit variable cost, each sale does not contribute toward fixed costs, so a valid break-even point cannot be reached.