Find out exactly how many units you need to sell to cover all your costs and start making profit.
Break-Even Point
200
units to break even
Break-Even Revenue
$10,000
Contribution Margin
$25
per unit
Contribution Ratio
50%
See how your profit changes at different sales volumes
| Units Sold | Revenue | Total Costs | Profit/Loss |
|---|
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Start Your LLCThe break-even point is when your total revenue equals your total costs. At this point, you're not making a profit, but you're not losing money either. Every sale after break-even is pure profit (minus variable costs).
Break-Even Units = Fixed Costs ÷ (Price - Variable Cost)
Contribution Margin = Price - Variable Cost
Fixed costs stay the same regardless of sales: rent, salaries, insurance, software subscriptions.
Variable costs change with each sale: materials, shipping, payment processing fees, packaging.