Break-Even Finder

The calculator first computes contribution margin per unit = price per unit − variable cost per unit. Break-even units = fixed costs ÷ contribution margin per unit, and break-even revenue = break-even units × price per unit. To estimate time, it uses break-even months = break-even units ÷ units sold per month (using your steady monthly volume).

This tool assumes fixed costs stay constant and that price, variable cost, and units sold per month remain unchanged over the period. It also assumes every unit you sell is fully monetized (no refunds) and ignores factors like seasonality, capacity limits, taxes, financing costs, discounts, and inventory timing. If any of those change in your real business, your actual break-even may occur later than the estimate.

If variable cost per unit is equal to or higher than price per unit, contribution margin is ≤ 0, so break-even is not possible in this model. If units sold per month is 0 (or entered incorrectly), the calculator can’t compute break-even months, so you’ll need a positive volume. If break-even units come out extremely high compared with your expected monthly demand, treat the timeline as impractical—even if mathematically it’s reachable.

For best results, enter fixed costs as a true monthly average (not annual totals) and keep variable costs aligned with what each unit actually costs you to deliver. Because the calculation ignores step-changes (like new hiring at a certain sales level), breaks-even may be understated once growth triggers additional fixed expenses. Use the “Not break-even within horizon” outcome as a signal to revisit pricing, variable costs, or monthly volume.