Break-Even Point Calculator
Units needed to cover every fixed cost.
Units to break even
250
$10,000 of revenue
A 10% price cut would move break-even to 334 units — discounts cost more volume than they appear to.
How the Break-Even Point Calculator works
Break-even is where contribution from sales exactly cancels fixed costs — the point past which you start making money rather than recovering what you already spent. Knowing it in units turns an abstract target into something you can actually plan against.
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 you calculate the break-even point?
Fixed costs ÷ (price per unit − variable cost per unit). With £4,000 of fixed costs, a £40 price and £24 of variable costs, the £16 contribution means 250 units to break even.
What if I sell several different products?
Use the contribution margin ratio approach instead: fixed costs ÷ contribution margin ratio gives break-even revenue rather than units. Unit break-even only works cleanly for a single product or a stable mix.
Should the owner's salary be a fixed cost?
If you draw one, yes. If you do not, run it both ways — the version including a market-rate salary tells you whether the business could survive employing someone to do your job, which is the real test of viability.
How does break-even change if I cut prices?
Sharply, and faster than most people expect. Cutting a £40 price by 10% removes £4 from a £16 contribution — a 25% reduction — pushing break-even from 250 units to 333. Discounts cost far more volume than they appear to.