Break-Even Calculator
Calculate your break-even point to understand how many units you need to sell to cover costs and start making profit
Rent, salaries, utilities, insurance, etc.
Price you charge customers per unit
Materials, packaging, shipping per unit
How much profit do you want to make?
Enter your costs and prices to see your break-even analysis
Fixed Costs
Costs that stay the same regardless of sales volume.
Variable Costs
Costs that change with each unit sold.
Contribution Margin
Revenue minus variable costs. The amount that contributes to covering fixed costs and generating profit.
Frequently Asked Questions
What is the break-even point?
The break-even point is where total revenue equals total costs. At this point, you're not making a profit or loss. Every unit sold beyond this point generates profit.
How can I lower my break-even point?
Reduce fixed costs (renegotiate rent, cut overhead), lower variable costs per unit (better suppliers, efficiency), or increase your selling price.
Why is contribution margin important?
A higher contribution margin means more of each sale goes toward covering fixed costs and profit. Products with low CM require much higher volumes to be profitable.
Should I include all costs?
Include all relevant fixed costs (monthly overhead) and all variable costs that change with each unit. Be thorough but don't double-count expenses.
Track Your Business Performance
SmallERP helps you track sales, costs, and profitability in real-time. Know your break-even point and margin on every product automatically.