Business Break-Even Calculator

Calculate the sales volume or revenue needed to cover fixed and variable costs.

Method and required inputs

Separate costs that change with each sale from costs that continue regardless of volume. Verify that the contribution margin is positive and test the effect of discounts or cost increases.

Break-even units equal fixed costs divided by contribution margin per unit. Contribution margin is selling price minus the costs that increase with each sale. Revenue break-even uses the contribution-margin ratio when the business sells multiple products or services.

Read the complete result

Classify costs carefully. Rent and core salaries may be fixed over the modeled range, while materials, merchant fees, commissions, shipping, and job labor may vary with sales. A mixed cost may need to be split rather than forced into one category.

Run a stress case

Stress discounts, wage increases, material inflation, refunds, rework, and lower sales volume. Verify that contribution margin remains positive; selling more of a negative-margin item increases the loss.

Limits and verification

Break-even does not include cash timing, financing availability, taxes, owner compensation, capacity limits, or the return required for the risk. Use it with a cash-flow forecast and actual job or product margins.

This calculator is educational, not a quote, approval, guarantee, tax opinion, or individualized recommendation. Confirm material figures, current rules, and actual product terms before acting.

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