Find out how many units you need to sell, or how much revenue you need to generate, to cover your costs before profit begins.
Break Even Units = Fixed Costs / (Price - Variable Cost)
How it works
Break-even analysis is useful before launching a product, changing prices, signing a lease, or committing to fixed monthly expenses.
A lower break-even point usually means less pressure on sales volume and a safer operating model.
Break-even units = fixed costs / (selling price per unit - variable cost per unit).
With $5,000 fixed costs, a $50 price, and $20 variable cost, break-even is 167 units.
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Read guideFAQ
It is the point where total revenue equals total costs. You are not making profit yet, but you are no longer losing money.
Fixed costs are expenses that do not change with production volume, such as rent, salaries, insurance, and subscriptions.
Variable costs rise with each unit sold, such as materials, packaging, shipping, and commissions.
Adjust price and cost assumptions to see how they change the number of units you must sell.
