Break-Even Point Calculator
How much do you need to sell before you stop losing money? Enter your price, costs and fixed overheads to see your break-even point in both units and revenue, and exactly where the lines cross.
Fixed costs over contribution margin
Each sale leaves a contribution margin after variable costs. Divide your fixed costs by that margin and you get the units you must sell to break even.
What each input actually means
What margin ratio should you aim for?
Contribution margin ratio shapes how quickly you reach break-even, and it varies a lot by business model.
Margin ratio above 60%
Typical of software and digital products. Most of each sale covers fixed costs, so break-even comes quickly.
Margin ratio 30 to 60%
Common for many product and service businesses. Healthy, but volume and fixed-cost discipline both matter.
Margin ratio 10 to 30%
Thin, as seen in retail and low-margin goods. You need high volume, so watch fixed costs closely.
Margin ratio below 10%
Very tight. Small cost increases or discounts can push you into a loss. Consider pricing or product changes.
Break-even FAQ
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