What counts as a fixed cost vs. a variable cost?

Fixed costs don't change with sales volume (rent, salaries, software). Variable costs scale with each unit sold (materials, per-unit shipping, payment processing fees).

What if the price is below the variable cost?

Then every sale loses money regardless of volume — break-even is impossible until the price is raised or the variable cost is reduced.

Does this account for taxes or other business costs?

No — it's a standard break-even formula based on exactly the three numbers you enter, not a full business plan.

Break-Even Calculator

Calculate how many units you need to sell, and how much revenue that represents, before a product starts turning a profit.

Fixed costs (total)Selling price per unitVariable cost per unit

Break-even volume

200 units

Break-even revenue

5,000.00

Formula: break-even units = fixed costs ÷ (price per unit − variable cost per unit). Below this volume you're operating at a loss; above it, each additional unit is pure profit (before any further fixed costs).

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How It Works

Enter your total fixed costs, the price you sell each unit for, and the variable cost of producing or delivering each unit.

Break-even units = Fixed costs ÷ (Price per unit − Variable cost per unit).

Example

$2,000 in fixed costs, a $25 selling price and $15 variable cost per unit means a $10 contribution per sale, so 200 units ($5,000 in revenue) are needed to break even.

Frequently Asked Questions

What counts as a fixed cost vs. a variable cost?: Fixed costs don't change with sales volume (rent, salaries, software). Variable costs scale with each unit sold (materials, per-unit shipping, payment processing fees).
What if the price is below the variable cost?: Then every sale loses money regardless of volume — break-even is impossible until the price is raised or the variable cost is reduced.
Does this account for taxes or other business costs?: No — it's a standard break-even formula based on exactly the three numbers you enter, not a full business plan.

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