Free small business calculator
Break Even Calculator
Calculate break-even units and revenue from fixed costs, variable cost per unit, and selling price. Free break-even analysis tool for small business planning.
Enter the minimum numbers needed to get a result.
Updated live as you type.
Planning estimate only. It does not include taxes, overhead allocation, depreciation, discounts, or other business-specific adjustments.
Break-even is the sales volume at which total revenue equals total costs, marking the point where a business starts generating profit.
Formula and example
Break-even units = Fixed costs / (Price per unit - Variable cost per unit)
If fixed costs are $2,000, variable cost is $25, and price is $65, contribution is $40 and break-even volume is 50 units.
Methodology & assumptions
Last updated: 2026-06-10Calculation method
Divides fixed costs by contribution per unit (price minus variable cost) to find the break-even volume. Assumes constant price and variable cost per unit. Rounds up to the next whole unit.
Data sources
Uses the numbers you enter and standard small-business finance formulas. Benchmark comparisons use HustleFin industry benchmark pages where available.
Limitations
Assumes linear cost behavior. Does not account for step costs, bulk discounts, or capacity constraints. Price must exceed variable cost for the model to work.
Input definitions
- Fixed costs: Rent, software, salaries, or other fixed expenses.
- Variable cost per unit: Direct cost for each unit sold.
- Selling price per unit: Price charged for each unit.
Frequently asked questions
What is break-even point?+
The break-even point is the sales volume where revenue covers fixed and variable costs, before profit starts.
What if price is lower than variable cost?+
You cannot break even on volume alone if each sale loses money before fixed costs. Increase price or reduce variable cost first.
Should fixed costs include owner salary?+
Include it if you need the business to cover that salary as part of the break-even target.
Can I use this for services?+
Yes. Treat each project, hour, or package as a unit and use the direct delivery cost as variable cost.
Related guides
Go deeper with in-depth guides on the concepts behind this calculator.
Next: What to do after this
Pick one next action. These are sequenced by the most common workflow after this calculation.
Continue the workflow
Estimate margin, convert margin to markup, then check the sales volume needed to break even.
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