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Break-Even Analysis Calculator

Margin of safety is the number to watch.

Written and maintained by Mohit PatelLast checked August 4, 2026How we build these

Break-even units

1,490

$86,364 of revenue

Contribution per unit$25.52
Contribution margin44%
Units for the profit target1,960
Margin of safety6.9%

Margin of safety is how far sales can fall before you lose money — 6.9% here. It is the number worth watching in a downturn, because it converts a revenue forecast directly into a survival question.

How the Break-Even Analysis Calculator works

Margin of safety is how far sales can fall before you lose money. It converts a revenue forecast directly into a survival question, which makes it the number worth watching when conditions turn.

Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.

Frequently asked questions

How do I calculate break-even?

Fixed costs divided by contribution per unit. Contribution is price less every cost that varies with volume.

What is margin of safety?

The gap between current sales and break-even, as a percentage of current sales. At 40%, sales could fall by two fifths before you lose money.

What belongs in fixed costs?

Anything that does not vary with volume in the relevant range — rent, salaries, software, insurance. Costs that step up at higher volumes are fixed within a band and should be modelled per band.

Does break-even change with the product mix?

Yes, because contribution per unit varies by product. A shift toward lower-margin lines raises the break-even volume without anyone changing a price.

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