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Free break-even calculator
How many units you must sell to cover your fixed costs. Free, no signup.
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Related definitions
The break-even point is where a product or service stops losing money and starts making it: the number of units you must sell just to cover your fixed costs. Every unit past that point is profit. This calculator finds that number from three inputs.
The formula, in plain English
Each unit contributes (price − variable cost) toward your fixed costs. Divide fixed costs by that contribution: break-even units = fixed ÷ (price − variable). Multiply by price for the break-even revenue.
Worked example
Your workshop costs $5,000 a month in fixed costs. You sell a service at $50 a visit with $30 of variable cost each. Contribution = $20.00 per visit. Break-even = 5,000 ÷ 20 = 250 visits, or $12,500.00 of revenue. Visit 251 is where profit begins.
Tips
- Everything past break-even is profit (before tax) — which is why high-volume, low-margin work can still be excellent business once you are past the line.
- Cutting variable costs moves the line faster than raising prices. Cheaper supplies or a faster process lowers break-even without risking customers.
- Recompute when anything changes. A rent increase, a supplier price hike, or a price change all move the break-even point — rerun the numbers the same day.
Also free
profit margin calculator, markup calculator, service price calculator — and the free invoice generator when it is time to bill.
Frequently asked questions
What are fixed vs. variable costs?
Fixed costs do not change with volume — rent, insurance, salaries. Variable costs scale with each unit — materials, per-job labor, card fees. Only variable costs go in the per-unit input.
What if the calculator shows a dash for units?
That means price minus variable cost is zero or negative — each unit loses money, so you can never break even at that price. Raise the price or cut the variable cost.
Can I use this for services, not products?
Yes. A 'unit' can be a job, a visit, a client, or an hour — whatever you sell one at a time. Enter the price and variable cost per unit of it.
Is this calculator really free?
Yes. Unlimited calculations, no signup, no watermark, no catch — like all of Billia's free tools.
Turn the number into an invoice
Ran the numbers? Bill it with Billia's free invoice generator — no signup, no watermark.