Break-Even Calculator
Start with a simple break-even calculation, then expand into SaaS, usage-based, marketplace, percentage expense, scenario, and sensitivity analysis when needed.
Used dynamically in result cards, charts, and insights.
What the customer pays per unit.
Costs that scale with each unit sold.
Used for expected profit and margin of safety.
Percentage expenses
Add royalties, app store fees, referral commissions, payment processing, marketplace cuts, or affiliate payouts.
Fixed and variable cost line items
Annual items are converted to monthly equivalent. Blank optional rows are ignored.
Fixed costs
Variable costs
Scenario analysis
Compare base, optimistic, and conservative cases by adjusting core assumptions.
Sensitivity analysis
Apply low and high percentage changes to see how break-even and profit move.
Break-Even Analysis
Revenue Total cost Fixed cost Break-even point
Enter a fixed cost, price, and variable cost to see results.
How break-even works
You break even when total revenue = total cost. Each unit contributes revenue after variable costs and percentage-based expenses toward covering fixed costs. Once fixed costs are covered, further volume is profit.
Formula: Break-even volume = Fixed costs ÷ Contribution margin after variable and percentage-based costs.
When this is useful
- Deciding whether a price is high enough to sustain the business.
- Pricing a new product or service.
- Evaluating a fixed-cost investment (e.g. new equipment) by computing how many extra units must be sold to justify it.
- Setting sales targets for a period.
Watch out for
- This assumes mostly linear costs. Real businesses often have volume discounts, step costs, and mixed product mixes.
- "Break-even" is accounting-profit. Opportunity cost is not included.
- Contribution margin must be positive after variable and percentage-based costs. If not, no volume will cover fixed costs.
Pair with related tools
Use break-even analysis alongside other business tools:
- NPV & IRR Calculator — evaluate longer-term investment returns and discounted cash flows.
- SWOT analysis — assess your competitive position before pricing.