How break-even works
Each sale contributes price − variable cost towards your fixed costs (rent, software, salaries, insurance). Once those contributions add up to your fixed costs, you break even; every sale after that is profit.
Example: fixed costs $3,000, price $25, variable cost $10. Each sale contributes $15, so you need 3,000 ÷ 15 = 200 units ($5,000 in sales). For a $1,500 profit you need 300 units.
Ways to lower your break-even point
- Raise prices (see the profit margin calculator).
- Cut variable costs — cheaper shipping, packaging or suppliers.
- Reduce fixed costs such as unused subscriptions.
Break-Even Calculator FAQs
What counts as a fixed cost?
Costs that stay the same whatever you sell in a month: rent, salaries, insurance, software, loan payments.
What is a variable cost?
Costs that rise with each sale: materials, packaging, shipping, payment fees.
Is my information saved or sent anywhere?
No. Everything is calculated in your browser and nothing is sent to a server.