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Break-Even Sales Calculator

Margin moves it more than cost cuts do.

Written and maintained by Mohit PatelLast checked August 4, 2026How we build these
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Break-even revenue

$86,364

$120,455 for the profit target

Fixed costs$38,000
Contribution margin44%
Revenue for the target$120,455
Margin of safety21.5%

Break-even revenue is fixed costs divided by contribution margin, so a one-point margin improvement lowers it by more than a one-point cost cut does. At 44%, every pound of fixed cost requires $2.27 of revenue to cover.

How the Break-Even Sales Calculator works

Break-even revenue is fixed costs divided by contribution margin, so a one-point margin improvement lowers it by more than a one-point cost cut does. That asymmetry is worth knowing before deciding which lever to pull.

Also known as: sales needed to break even · break even revenue calculator · how much must I sell to cover costs

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 sales?

Fixed costs divided by contribution margin. At 44% margin, every pound of fixed cost needs £2.27 of revenue behind it.

Why does margin move it more?

Because it changes the divisor. Raising margin from 44% to 45% lowers break-even revenue by more than cutting a corresponding amount of fixed cost does.

What is margin of safety?

How far revenue can fall before you reach break-even, as a percentage. It converts a forecast into a survival question.

Does product mix affect it?

Yes, because contribution margin varies by product. A shift toward lower-margin lines raises break-even revenue without any price or cost changing.

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