The break-even point is the sales volume at which total revenue equals total costs, so you make neither profit nor loss. It is a basic sanity check for a new product, a price change or a stocking decision.
Enter your fixed costs for the period (rent, salaries, subscriptions), the selling price per unit and the variable cost per unit (materials, packaging, shipping, payment fees).
For stocked goods, include the purchase cost in variable cost. If you buy in large batches, remember the cash tied up in inventory before break-even is reached.
Break-Even Point Calculator
Break-even point
1,200 units
revenue: € 30,000
How the calculation works
Break-even units = fixed costs ÷ (selling price − variable cost per unit). Break-even revenue = break-even units × selling price.
Example: €12,000 fixed costs, a €25 selling price and a €15 variable cost give a €10 contribution per unit. 12,000 ÷ 10 = 1,200 units, or €30,000 in revenue.
If the selling price is not higher than the variable cost, there is no break-even volume, because each extra sale adds no contribution.
See also: Markup and margin calculator, Dead Stock Cost Calculator.
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