Break-Even & Revenue Target Calculator
Calculate your break-even point, revenue targets, and profit at different volumes. Visualize profitability with interactive charts and scenario comparisons.
Business Costs
Rent, salaries, insurance, subscriptions, etc.
Materials, shipping, processing fees, etc.
Break-Even Analysis
Profit vs Volume
Scenario Comparison
| Scenario | Units | Revenue | Total Cost | Profit |
|---|---|---|---|---|
| 50% of Break-Even | 167 | $8,350 | $13,340 | -$4,990 |
| Break-Even✓ | 334 | $16,700 | $16,680 | +$20 |
| 150% of Break-Even | 501 | $25,050 | $20,020 | +$5,030 |
| 2x Break-Even | 668 | $33,400 | $23,360 | +$10,040 |
| 3x Break-Even | 1,002 | $50,100 | $30,040 | +$20,060 |
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How to Calculate Your Break-Even Point
A break-even analysis tells you exactly how many units you need to sell — or how much revenue to generate — before your business starts making a profit.
It's essential for pricing decisions, budget planning, and determining whether a new product or market is viable.
The Break-Even Formula
Break-Even Units = Fixed Costs ÷ Contribution Margin, where contribution margin = price per unit − variable cost per unit.
Rent, salaries, insurance, software, loan payments — constant regardless of sales
Materials, shipping, packaging, commissions, payment fees — change per unit
Critical Error
A negative contribution margin means you lose money on every sale regardless of volume. Fix pricing or costs first.
Why Contribution Margin Is Key
Your contribution margin determines how much each sale "contributes" toward covering fixed costs. A $50 product with $20 variable costs has a $30 contribution margin.
With $10,000 in monthly fixed costs, you need 334 units to break even ($10,000 ÷ $30).
Real-World Break-Even Example
Online store selling handmade candles:
$3,000/month (workshop, tools, website, insurance)
$8 per candle (wax, wicks, containers, shipping)
$28 per candle
$20 per candle
Break-even = $3,000 ÷ $20 = 150 candles/month. Every candle sold beyond 150 generates $20 in pure profit.
Scenario Planning
At 2× break-even (300 candles): $3,000/month profit. At 3× (450 candles): $6,000/month profit. Use the scenario table above to plan targets.
Lowering Your Break-Even Point
Negotiate rent, optimize subscriptions, consolidate tools
Bulk purchasing, supplier negotiations, process efficiency
Value-based pricing, premium positioning, bundling
Pro Tip
Even small improvements compound. A 10% reduction in fixed costs + 10% price increase can lower your break-even by 30-40%.
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Frequently Asked Questions
Common questions about using the Break-Even Calculator
Use This With
Calculate the right price for your services based on expenses, billable hours, and profit goals. Stop undercharging with data-driven pricing strategy.
Calculate your net profit per order, breakeven CPA, required ROAS, and daily profit potential. Know if your product is profitable before spending on ads.
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