How do I lower my break-even point?

Raise price, cut variable cost per unit, or reduce fixed costs. Each increases the contribution margin or shrinks what it must cover.

What's the difference between fixed and variable costs?

Fixed costs stay the same regardless of volume (rent, salaries). Variable costs rise with each unit produced (materials, shipping).

Break-Even Calculator

Find the number of units you need to sell to cover your fixed costs.

UPDATED · MAY 2026

Fixed costs

rent, salaries, tooling — totalPrice per unit

Variable cost per unit

contribution margin $20.00

Break-even point

500units

REVENUE$25,000

MARGIN / UNIT$20.00

Units to sell

500

Break-even revenue

$25,000

Margin / unit

$20.00

How to use the Break-Even Calculator

01
Enter fixed costs. Total costs that don't change with volume — rent, salaries, tooling.
02
Set the price per unit. What you sell each unit for.
03
Set the variable cost per unit. The cost to produce one more unit.

How is it calculated?

The contribution margin per unit is price minus variable cost — the amount each sale contributes toward fixed costs. Break-even units = fixed costs ÷ contribution margin. Below that you lose money; above it, each unit is profit. Break-even revenue is units × price.

Frequently asked

The questions readers ask most about the break-even calculator.

The portion of each sale left after variable costs, which goes toward covering fixed costs and then profit. If price ≤ variable cost, you never break even.

How to use the Break-Even Calculator

How is it calculated?

Frequently asked

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