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Small Business Break-Even Calculator

Calculate the break-even point for your small business. See how many units or how much revenue you need to cover all fixed and variable costs.

Every small business owner needs to know their break-even point — the exact number of sales where revenue covers all costs. This calculator helps you determine how many units you need to sell (or how much revenue you need to earn) to stop losing money and start making profit.

Tips for Small Business Break-Even

1

Reduce your break-even point by lowering fixed costs (negotiate rent, go remote) or increasing your margin per unit

2

Calculate break-even for each product line separately — some products may be dragging down profitability

3

Review your break-even point quarterly as costs and prices change

Frequently Asked Questions

How do I calculate the break-even point?
Break-even units = Fixed Costs / (Price per Unit - Variable Cost per Unit). For example: $5,000 fixed costs / ($50 price - $20 variable cost) = 167 units. You need to sell 167 units per month to break even.
What are fixed costs vs variable costs?
Fixed costs stay the same regardless of sales (rent, salaries, insurance, software). Variable costs change with each sale (materials, shipping, transaction fees). Understanding this split is key to accurate break-even analysis.
Last updated: April 2026

Data sources: Standard mathematical formulas

For informational purposes only. Not financial, medical, or legal advice. Always consult a qualified professional for decisions affecting your finances or health.

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