← Blogby Marcell Almeida

How to find your break-even point

Know exactly how many units you need to sell before you stop losing money.

Break-even analysis answers: "How many units at this price cover my fixed costs?" The Break-even Calculator returns units, revenue at break-even, and contribution margin.

Try it — enter fixed costs, price, and variable cost

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How it works

  1. Fixed costs — rent, salaries, insurance — costs that do not change with volume.
  2. Price per unit — what you charge.
  3. Variable cost per unit — materials, shipping, commissions per sale.

The formula

Break-even units = Fixed Costs / (Price − Variable Cost). If variable cost exceeds price, you cannot break even — raise price or cut costs.

Contribution margin

Contribution margin = (Price − Variable Cost) / Price. It shows what percentage of each sale covers fixed costs after direct costs.

The How to find your break-even point is free, runs locally, and never sends your data to a server. More business calculators at maratool.com.