Break-Even Sales Calculator
Calculate the units and revenue needed to cover fixed and variable costs. Compare expected sales with your monthly break-even point.
Before you calculate
Single product or service, whole units, flat price and unit cost, and one monthly period. Taxes and financing are excluded unless entered as costs. If price does not exceed variable cost, the model reports no positive contribution margin instead of a misleading sales target.
How many sales do I need to cover my costs?
Every unit sold contributes its selling price minus variable cost toward fixed expenses. Divide monthly fixed costs by that contribution and round up to the next whole unit. Compare expected unit sales with the threshold to estimate operating profit or loss.
Break-even units = ceiling(fixed costs ÷ (price − variable cost)); operating profit = units × (price − variable cost) − fixed costs
Worked example
With $3,000 in fixed costs, a $50 price and $20 variable cost, each sale contributes $30. Break-even is 100 units ($5,000 revenue); 150 units produce $1,500 operating profit before excluded costs.
Assumptions and limits
Single product or service, whole units, flat price and unit cost, and one monthly period. Taxes and financing are excluded unless entered as costs. If price does not exceed variable cost, the model reports no positive contribution margin instead of a misleading sales target.
How to interpret MoneyCalc estimatesFrequently asked questions
Why round up the unit count?
When the product is sold in whole units, a fractional unit cannot cover the remaining costs. The revenue shown uses the rounded-up number of units.
What if I sell several products?
Different unit margins need a sales-mix model. This single-product tool should not be applied to a mixed catalogue without first defining a representative mix and its contribution.
Further reading
Background resources; these organizations do not endorse this calculator.
Sources & calculation notes
Maintained by MoneyCalc. Results are estimates based on the inputs and assumptions shown, not personalized financial advice or a lender quote. Default rates are examples unless a specific tax year or official table is identified.
References explain the underlying concepts or rules. They do not endorse or independently certify this implementation.
Calculations run in your browser. Some tools retain settings on this device. Displayed rounding can produce small differences from a statement or contract.