📊 Break-Even Point Calculator
How many units do you need to sell before your side business turns a profit?
How This Is Calculated
Contribution Margin = Price − Variable Cost. Break-Even Units = Fixed Costs ÷ Contribution Margin. This tells you exactly how many units you must sell each month before your fixed costs are covered and every additional sale becomes pure profit.
Frequently Asked Questions
What counts as a fixed cost versus a variable cost?
Fixed costs stay the same no matter how many units you sell — rent, software subscriptions, insurance.
Variable costs scale with each sale — materials, packaging, per-unit platform fees.
What happens after I pass my break-even point?
Every unit sold beyond your break-even point contributes its full margin directly to profit, since your
fixed costs are already covered.
Guide: understanding your result
- Break-even units = Fixed costs ÷ (Price per unit − Variable cost per unit). The denominator is the contribution margin.
- Break-even revenue = Break-even units × price, or Fixed costs ÷ contribution margin ratio.
- Every unit sold above break-even adds its contribution margin to profit.
Worked example
With $6,000 monthly fixed costs, a $25 price and $10 variable cost per unit, break-even is 400 units ($10,000 of revenue) per month.
Common mistakes to avoid
- Classifying costs that grow with sales (payment fees, packaging) as fixed.
- Assuming every unit sells at full price, ignoring discounts and returns.
Frequently asked questions
How can I lower my break-even point?
Reduce fixed costs, raise prices or lower variable costs — each increases the contribution margin or reduces what it must cover.
Official sources
Examples are calculated live from the same data the calculator uses and are for education only — they are not financial, tax or investment advice.
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