Profit

Break-Even Calculator

Find how many units you must sell to cover your fixed costs, and the sales revenue at that point, from your price and cost per unit.




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The break-even point is where total revenue exactly covers total costs — every unit after it adds profit, and every unit short of it leaves a loss. It is a planning number, not a forecast: it assumes your price and per-unit cost stay the same for every unit, so re-run it whenever either changes.

Formula

Contribution per unit = selling price − variable cost per unit. Break-even units = fixed costs ÷ contribution per unit, rounded up to the next whole unit. Break-even revenue = break-even units × selling price.

How it works

Enter your fixed costs for the period — things that do not change with each sale, like a subscription or a batch of packaging. Then enter the selling price and the cost that each extra unit adds, including product, fees and shipping. The calculator divides the fixed costs by what each unit contributes and rounds up, because you cannot sell part of a unit to break even.

Worked example

Fixed costs of $1,000, a $25 price and a $15 variable cost: each unit contributes $25.00 − $15.00 = $10.00. Break-even units are $1,000 ÷ $10.00 = 100 units, and break-even revenue is 100 × $25.00 = $2,500. Selling 99 units leaves you $10 short; selling 101 units puts you $10 ahead.

FAQs

What counts as a fixed cost?

Costs that stay the same whether you sell 10 units or 100 in the period: a store subscription, a software plan, or rent for a workspace. Costs that grow with each sale are variable costs, not fixed ones.

What counts as a variable cost?

Everything one more sale adds: the product itself, marketplace and payment fees on that sale, shipping and packaging for that order.

Why is break-even rounded up?

Because you cannot sell a fraction of a unit. If the division gives 100.2 units, you need 101 whole sales to actually cover the fixed costs.

What if my price is below my variable cost?

Then every sale loses money and there is no break-even point at any volume. The price must rise above the variable cost before volume can help.

How do I use break-even for a new product?

Compare it with realistic sales: if break-even is 100 units and you expect 40, either the price, the costs or the product need to change before you commit stock money.

Stand: October 2026. Pure arithmetic — no platform rate is used; enter your own figures.

Disclaimer: Results are estimates and general information only, not tax or financial advice. Fees change, so check the platform's current fee schedule before you price an item.

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