Find exactly when your business becomes profitable. Calculate your break-even point in units and revenue.
Formula
BEP = Fixed Costs / (Price - Variable Cost)
Margin = Price - Variable Cost
Margin % = Margin / Price x 100
Tips
Knowing your break-even point helps you set realistic pricing and sales targets. It's the foundation of every sound business plan.
We surface validated business ideas with real demand signals, so you can pick one with a clear path to break-even.
Get StartedBreak-even analysis is one of the first things every founder should do before launching a product. It answers a simple but crucial question: how many sales do I need to cover my costs?
Fixed costs are the expenses you pay regardless of how many units you sell. Rent, salaries, software subscriptions, insurance. These stay constant whether you sell 10 units or 10,000.
Variable costs change with each unit sold. Payment processing fees, server costs per user, shipping, raw materials. The more you sell, the higher your total variable costs.
Contribution margin is the difference between your price and your variable cost per unit. It represents how much each sale contributes toward covering your fixed costs. A higher contribution margin means you reach break-even faster.
For SaaS businesses, the break-even calculation is especially useful for pricing decisions. If your break-even point requires 500 customers at $29/month, but your total addressable market in year one is only 200 customers, you know you either need to raise your price or lower your costs.
This calculator also lets you input your current monthly sales to see whether you're already above or below your break-even point. If you're below, you'll see exactly how many more units you need to sell to reach profitability.