FounderToProfit
Free tool

Break-Even Calculator

Break-even is the volume where contribution from sales exactly covers your fixed costs. Below it you consume runway every month; above it you generate it. Enter your unit economics to find the line — and how far you are from it today.

Your unit economics

Average revenue from one sale, subscription, or job.

$

Costs that only occur because you made the sale: materials, fulfilment, payment fees, hosting per seat.

$

Costs you pay whether you sell nothing or everything: salaries, rent, software, insurance.

$

Optional. Adds current profit and margin of safety.

units

Optional. Solves for the volume that produces it.

$

Enter price, variable cost, and fixed costs to find your break-even point.

How this is calculated

Contribution margin
price per unit − variable cost per unit
Contribution margin ratio
contribution margin ÷ price per unit
Break-even units
⌈ fixed costs ÷ contribution margin ⌉
Break-even revenue
break-even units × price per unit
Units for a target profit
⌈ (fixed costs + target profit) ÷ contribution margin ⌉
Margin of safety
(current units − break-even units) ÷ current units

What this assumes

  • Break-even units are rounded up. A partial unit does not cover a fixed cost.
  • One average price and one average variable cost. If you sell distinct products with very different margins, run each line separately.
  • Fixed costs are genuinely fixed within this volume range. Adding a person or a warehouse moves the line.
  • Profit here means operating profit before tax, interest, and owner draw.
  • Blank optional fields are excluded rather than assumed to be zero.

Keep going

How to Create a Startup Business Plan

Where break-even and unit economics belong in a plan that stands up to scrutiny.

Startup Runway Calculator

How long you have to reach the volume above.

Burn Rate Calculator

Derive your real fixed-cost base from your bank balances.

How to Validate a Business Idea

Before optimising break-even, confirm anyone wants the thing at that price.