Pricing Updated 2026-07-15
Break-Even Calculator
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.