Profit and pricing
Break-Even Calculator
Use this break-even calculator to estimate how many sales you need before a product, service, or launch starts making profit.
Formula
- Contribution margin = Price per unit - Variable cost per unit
- Break-even units = Fixed costs / Contribution margin
- Break-even revenue = Break-even units * Price per unit
- Profit after target sales = Contribution margin * Target sales - Fixed costs
Examples
- A $49 digital product with $5 in variable cost and $1,000 upfront cost breaks even at about 23 sales.
- A $500 service package with $80 in delivery costs and $2,000 in fixed costs breaks even at about 5 projects.
- A $19 template with $2 in per-sale costs and $750 in launch costs needs about 45 sales to break even.
When to use this calculator
- Estimate launch targets before building a product.
- Compare low-price and high-price offers.
- See whether a paid tool or contractor cost is realistic.
Common mistakes
- Setting price below variable cost.
- Counting sales revenue without deducting per-sale costs.
- Treating break-even as profit instead of the point where profit starts.
Related calculators
Sources and assumptions
This calculator uses the formula and assumptions shown on this page.
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This calculator provides estimates for informational purposes only. It is not financial, tax, legal, or professional advice. Always verify current platform fees and consult a qualified professional for decisions that affect your business or finances.