Small service business
Fixed costs are $15,000, variable cost is $28, and the price is $65.
Break-even is about 405 sales and roughly $26.4k revenue.
The margin per sale is strong enough, but you still need a decent volume to cover fixed costs.
Break-even Calculator
Use this calculator when you want a fast answer to a practical question: how many units, jobs, or orders do I need before the business starts paying for itself?
Inputs
Break-even Calculator
See how many units you need to sell before your fixed costs are covered.
Results
Break-even snapshot
Use the contribution margin to see how many sales you need to hit break-even.
Contribution margin
$37.00
Selling price minus variable cost.
Break-even units
405.41
Units required to cover fixed costs.
Break-even revenue
$26,351.35
Revenue needed at break-even.
Quick take
A quick read before you calculate
Use this calculator when you want a fast answer to a practical question: how many units, jobs, or orders do I need before the business starts paying for itself?
Formula
Break-even formula
Examples
2-3 real scenarios to make the result easier to trust.
FAQ
Clear answers to the questions people usually ask first.
Formula
Break-even formula
Break-even units = Fixed costs ÷ (Selling price - Variable cost per unit). Break-even revenue = Break-even units × Selling price.
If your selling price is too close to variable cost, the number of units you need rises quickly.
Examples
Product launch
Fixed costs are $8,000, variable cost is $12, and the price is $30.
Break-even is 444 units and $13.3k revenue.
A lower price means more units, so the launch needs more demand to pay back the setup cost.
Premium package
Fixed costs are $5,000, variable cost is $40, and the price is $120.
Break-even lands at about 63 sales.
Higher margin helps a lot when the offer is positioned as a premium service.
When to use
Use it when you are setting a price, testing a new offer, or checking whether a month of sales can cover rent, payroll, and tools.
Common mistakes
- Mixing fixed costs and variable cost per unit in the same field.
- Forgetting to subtract variable cost from selling price before dividing.
- Rounding too early and getting an unrealistically neat break-even number.
FAQ
What if the selling price is below variable cost?
Then the calculator should show zero break-even units, because every sale loses money instead of covering costs.
Does break-even include profit?
No. Break-even only shows the point where costs are covered. Anything after that is profit.
Next step
Need cleaner cash flow tracking?
If you want a fuller view of invoices, expenses, and profit, QuickBooks or Xero can keep the numbers in one place.
Revisit break-even anytime your price, supplier cost, or fixed overhead changes.