Break-Even Point Calculator
Enter your fixed costs, the cost of each unit and its selling price: you'll see how many you need to sell each month not to lose money and, if you like, when you recover what you invested.
Enter your fixed costs, variable cost and selling price.
Monthly figures, before taxes.
Results are estimates. Solvemis accepts no responsibility for the results obtained or for how they are used. Always double-check the result and talk to a qualified professional before making decisions.
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How it works
How to use it
- Add up your fixed costs for one month: rent, salaries, insurance, subscriptions.
- Enter the variable cost of each unit and its selling price, excluding VAT (IVA).
- To see your real result, add the sales you expect each month and, if there is one, the initial investment.
- You'll see the break-even units and sales in pesos and, with your sales, the monthly result and the payback period. The chart marks where revenue and costs cross.
How it is calculated
The margin per unit is the price minus the variable cost. The break-even units are the fixed costs divided by that margin, rounded up because you can't sell half a unit. With expected sales, the month's result is sales × margin − fixed costs, and the payback period is the investment divided by that result, rounded up to the next month.
Break-even (units) = fixed costs ÷ (price − variable cost)
Sources
- Calculate your startup costs: break-even point — U.S. Small Business Administration (SBA)
About this calculator
What the break-even point is
It’s the sales volume at which revenue exactly covers all costs, fixed and variable. At that point you neither make nor lose money: each unit above it is profit and each unit below it, a loss.
An example with the calculator’s figures: with MX$10,000 of fixed costs a month, a variable cost of MX$100 per unit and a price of MX$300, each sale leaves MX$200 towards the fixed costs. You need 50 units a month, which means MX$15,000 of sales, to cover them.
The contribution margin
That MX$200 is the contribution margin: what each sale contributes after paying what it costs. On the price, it’s 66.7%. It’s the lever that moves break-even the most:
- Raising the price from MX$300 to MX$350 lowers break-even from 50 to 40 units.
- Cutting the variable cost from MX$100 to MX$80 lowers it to 46.
- Trimming MX$2,000 of fixed costs lowers it to 40.
If the price doesn’t exceed the variable cost, there’s no possible break-even: each sale loses money and selling more only increases the loss.
With your expected sales
Break-even tells you how much you need to sell; your expected sales tell you how much you really sell. With 80 units a month you make 30 × MX$200 = MX$6,000 a month above break-even. With 25, you’re 25 units short and lose MX$5,000 every month.
That’s why there are no “months until profitable” here: with monthly figures, either you’re profitable from the first month or you won’t be while nothing changes. What does take time is recovering an initial investment: at MX$6,000 a month, an MX$60,000 investment is recovered in 10 months.
What the calculation assumes
- Constant price and costs. In practice there are volume discounts, and some fixed costs rise beyond a certain size (another premises, another person).
- A single product. With several, use the margin weighted by what each one sells.
- Before tax. Enter prices excluding VAT (IVA); the result is before income tax (ISR).
Frequently asked questions
What is the break-even point?
It's the number of sales at which revenue exactly covers all costs: you neither make nor lose money. Below it there are losses and above it, profits. With MX$10,000 of fixed costs a month, a cost of MX$100 per unit and a price of MX$300, break-even is 50 units a month.
How long until I'm profitable?
With monthly figures there is no timeline: if you sell above break-even you make money from the first month and, if you sell below it, you lose money every month. What does take time is recovering an initial investment: with 80 sales a month you make MX$6,000 a month, and MX$60,000 invested is recovered in 10 months.
What counts as a fixed cost and what as a variable one?
Fixed is what you pay even if you sell nothing: rent, salaries, insurance, software subscriptions. Variable is what each unit you sell costs: raw materials, shipping, payment gateway or marketplace fees.
Updated October 1, 2026
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