Business Break-Even Calculator
Break-even is the point where sales exactly cover costs. Enter your selling price, the variable cost per unit and your monthly fixed costs.
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Your numbers
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What this number means: The contribution margin is what each sale leaves to pay fixed costs. Break-even is the number of sales needed to cover them entirely; beyond that, each sale contributes to profit.
What the calculation assumes
- Price and variable cost are assumed constant — no volume discounts, no economies of scale.
- Fixed costs are assumed stable over the period.
- Taxes, seasonality and collection delays are not modelled.
- A variable cost at or above the price makes break-even unreachable: that is a signal, not an error.
Next step
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Frequently asked questions
What is the contribution margin?
It is the selling price minus the variable cost: the part of each sale left over to pay fixed costs and then produce profit.
My break-even is very high. What now?
There are only three levers: raise the price, cut the variable cost, or cut fixed costs. The tool shows the effect of each immediately.
Does this apply to a service business?
Yes. The “unit” becomes an engagement, a billable hour or a subscription, and the variable cost is what delivering one more unit costs you.
Official sources
Amounts, thresholds and schedules change. MTLPages does not reproduce them in the page: check the source for the figure currently in force.
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Notice
This calculator does arithmetic on the values you enter. It is not financial, legal or tax advice, does not account for your personal situation, and guarantees no approval and no price. Confirm any decision with a qualified professional.