Pricing Updated 2026-07-15
Break-Even Calculator for Small Business
Use our free break-even calculator for small business to calculate how many units you need to sell to cover your fixed costs and break even. Essential for new product launches.
The formula
How the calculation works
Break-Even Units = Fixed Costs / (Price - Variable Cost)
- Subtract the variable cost per unit from the sale price to find your contribution margin.
- Divide your total fixed costs by the contribution margin.
- The result is the number of units you must sell to break even.
Worked examples
Real-world scenarios
Software Subscription Launch
Launching a new product with $1500 in fixed monthly costs.
50 units to break even
Pro tips
Get more from this calculator
- Lowering your fixed costs reduces the number of units needed to break even.
- Increasing your price or lowering variable costs increases your contribution margin.
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FAQ
Common questions
What is a break-even point?
The break-even point is the level of sales where total revenues equal total costs. At this point, a business is neither making a profit nor taking a loss.