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What is Break-even point?
The break-even point is the sales level where revenue exactly covers all costs — no profit, no loss. In units: fixed costs / (price − variable cost per unit). Every sale past it is profit, which is why it's the first calculation for any new product or service.
In practice
A food truck has $3,000/month fixed costs; each meal sells for $12 with $5 variable cost. Break-even = $3,000 / $7 = 429 meals a month — about 15 a day.
Find your break-even number
Billia's free break-even calculator does the division for you.
Open the break-even calculatorFrequently asked questions
How do I calculate break-even in dollars instead of units?
Multiply break-even units by price per unit. Or use: fixed costs / contribution margin ratio, where the ratio is (price − variable cost) / price.
What counts as a fixed cost?
Costs that don't change with sales volume: rent, insurance, base salaries, software subscriptions. Variable costs move with each sale: materials, commissions, per-unit labor.
My break-even looks unreachable — now what?
Three levers: raise prices, cut fixed costs, or reduce variable cost per unit. Small moves on all three beat a big move on one.