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Break-Even Calculator

Enter your fixed costs, the cost per unit and the selling price to see how much you need to sell each month not to lose money and, if you like, when your investment pays for itself.

Enter your fixed costs, variable cost and selling price.

RevenueTotal costs

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

  1. Add up one month's fixed costs: rent, salaries, insurance, subscriptions.
  2. Enter the variable cost per unit and the selling price, excluding GST.
  3. To see your actual result, add your expected monthly sales and, if there is one, the initial investment.
  4. You will see the break-even units and revenue and, with your sales, the monthly result and the payback period. The chart shows where revenue and costs cross.

How it is calculated

The contribution margin per unit is the price minus the variable cost. The break-even quantity is fixed costs divided by that margin, rounded up because you can't sell half a unit. With expected sales, the monthly result is sales × margin − fixed costs; 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

About this calculator

What the break-even point is

The sales volume at which revenue covers exactly all fixed and variable costs. With $1,000 of fixed costs a month, $10 of variable cost per unit and a price of $30, each sale leaves $20 of contribution margin: you need 50 units a month, or $1,500 in revenue.

With your expected sales

At 80 units a month you earn $600 a month; at 25 you are 25 units short and lose $500 every month. An initial investment of $6,000 is paid back after 10 months with $600 profit a month.

What the calculation assumes

Constant prices and costs, a single product (with several, use the weighted average contribution margin) and figures before tax. If the price is not above the variable cost, there is no break-even point.

Frequently asked questions

What is the break-even point?

The sales volume at which revenue covers exactly all costs: no profit, no loss. With $1,000 of fixed costs a month, a cost of $10 per unit and a price of $30, it is 50 units a month.

When will I be profitable?

With monthly figures there is no deadline: above break-even you make money from the first month, below it you lose money every month. Only paying back an initial investment takes time: with 80 sales a month you earn $600, and $6,000 invested is back in 10 months.

Updated 1 October 2026

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