Break-Even Point Calculator
Find the exact unit sales volume and revenue threshold your business needs to achieve to cover all overhead and production costs.
Overhead expenses like rent, payroll, and insurance.
Average revenue earned per unit sold.
Production costs like raw materials and packing per unit.
Calculate projected total profit or loss under this volume.
Calculate sales required to reach a specific net profit.
To find the point at which net profitability is zero, fixed overhead costs are divided by the profit contribution margin earned from each individual unit sold.
Contribution Margin = Price per Unit - Variable Cost per Unit
Break-Even Units = Total Fixed Costs / Contribution Margin
Break-Even Sales = Break-Even Units * Price per Unit
Target Profit Units = (Total Fixed Costs + Target Profit) / Contribution Margin
Fixed costs are monthly recurring expenses that do not fluctuate with production levels (e.g., store rent, server cluster licenses, developer/employee salaries).
Variable costs are expenses incurred directly for each item sold (e.g., shipping boxes, wholesale merchandise raw materials, payment gateway fees).
| Target Level | Units Sold | Total Revenue | Total Costs | Projected Profit/Loss |
|---|---|---|---|---|
| 50% | 167 | $8,350 | $13,340 | $-4,990 |
| 75% | 250 | $12,500 | $15,000 | $-2,500 |
| 100% (Break-Even) | 333 | $16,650 | $16,660 | $-10 |
| 125% | 417 | $20,850 | $18,340 | +$2,510 |
| 150% | 500 | $25,000 | $20,000 | +$5,000 |
| 200% | 667 | $33,350 | $23,340 | +$10,010 |