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OZO Break-Even Calculator

Free Break-Even Calculator

Find out how many sales cover your fixed costs, or reach a profit target, from your price and cost per unit. Instant and private.

  • Free forever
  • No signup
  • Instant results

Costs that don’t change with sales: rent, salaries, software, insurance (for the period).

What each extra sale costs you: materials, packaging, payment fees.

Leave empty for the break-even point.

Enter your costs and price.

How to calculate your break-even point

  1. 1

    Add up fixed costs

    Enter the costs you pay whatever you sell, such as rent, salaries and software, for a month or a year.

  2. 2

    Enter price and cost per unit

    Type what one unit sells for and what each extra unit costs you to make or deliver.

  3. 3

    Read your break-even point

    See how many units, and how much revenue, cover all your costs.

  4. 4

    Add a profit target

    Optionally enter the profit you want; the calculator shows the sales needed to reach it.

What is break-even?

Your break-even point is the level of sales at which revenue exactly covers costs: no profit, no loss. Every sale beyond it adds profit. Knowing it tells you whether a price, product or business plan can work, and how much risk you are taking.

The formulas

  • Contribution per unit = price − variable cost per unit
  • Break-even units = fixed costs ÷ contribution per unit
  • Units for a profit target = (fixed costs + target) ÷ contribution per unit
  • Break-even revenue = break-even units × price

Units are rounded up, because you can't sell part of one.

Set prices with the profit margin calculator, then quote customers with the quote generator.

Frequently asked questions

How do you calculate the break-even point?

Divide your fixed costs by the contribution per unit, which is the selling price minus the variable cost per unit. With 5,000 of fixed costs and products that sell for 50 and cost 30 to make, you need 5,000 ÷ 20 = 250 sales to break even.

What is contribution margin?

The share of each sale left over to pay fixed costs and then make profit: (price − variable cost) ÷ price. In the example above it is 20 ÷ 50 = 40%.

What counts as a fixed cost?

Anything that does not change with how much you sell in the period: rent, salaries, insurance, subscriptions, loan repayments. Materials, packaging, shipping and card fees are variable costs.

How can I lower my break-even point?

Raise your price, reduce the variable cost per unit, or cut fixed costs. Small price rises often have the biggest effect, because all of the increase goes to contribution.

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