Find exactly how many units you need to sell to cover your costs. Enter your fixed costs, variable cost per unit, and selling price to instantly see your break-even point, contribution margin, and profit at any sales volume.
Break-even analysis determines the point at which total revenue equals total costs — meaning you neither make a profit nor incur a loss. It tells you exactly how many units you need to sell before your business starts to profit. It's one of the most fundamental tools in business planning and pricing strategy.
Contribution margin is the amount each unit sold contributes toward covering fixed costs and generating profit. It equals the selling price minus the variable cost per unit. Once total contribution margin equals your fixed costs, you've broken even — every additional unit after that is pure profit.
Three levers: reduce fixed costs (negotiate rent, cancel unused subscriptions), reduce variable costs per unit (cheaper suppliers, automation), or raise your selling price. Even a small price increase can dramatically lower break-even volume when demand allows.