Skip to main content
WEB MAESTRO
العربيةStart a project
Break-even

Break-even calculator: how much do you need to sell to start profiting?

Enter your fixed costs, selling price and unit cost to see the units and revenue you need to break even, what a profit target requires, and how break-even moves if you change price or costs.

Break-even units and revenueProfit targetWhat-if

Your numbers (monthly, for example)

Result

231units to break even
5,775 JODbreak-even revenue
13 JODcontribution per unit · 52%
347units for your profit target
900 JODprofit at 300 units sold

Margin of safety 23%: sales can fall by this much before you start losing money.

How does break-even move?

ChangeBreak-even unitsDifference
Raise price 10%194-37
Cut variable cost 10%212-19
Cut fixed costs 10%208-23
Discount price by 10%286+55

Raising the price slightly often lowers break-even more than any other move, because it lifts the margin on every unit you sell.

The tool assumes a constant price and unit cost and fixed costs that do not change with volume. If you sell several products, use a weighted average or calculate each one separately.

How the tool works

Enter fixed costs, selling price and variable cost per unit, and the tool calculates the contribution margin and the units and revenue you need to break even. Add expected sales to see your profit and margin of safety, and a profit target to see the units it needs. The what-if table shows how raising price or cutting costs moves the break-even point.

What is the break-even point?

The break-even point is the sales volume where revenue equals costs, so there is neither profit nor loss. Above it you profit; below it you lose. It tells you how many units you must sell each month before your business actually starts making money.

The formula: break-even units = fixed costs ÷ (selling price − variable cost per unit). The gap between price and variable cost is called the contribution margin, the amount each unit contributes toward covering fixed costs.

Fixed versus variable costs

  • Fixed: paid however much you sell, such as rent, base salaries, subscriptions and a steady monthly marketing budget.
  • Variable: rise with every unit, such as materials, packaging, shipping and payment gateway fees.
  • If a cost is mixed (a salary plus commission), split it: the base is fixed and the commission is variable.

Margin of safety and the profit target

The margin of safety shows how far your expected sales can fall before you go into loss. A small margin means your business is fragile in any weak season. The profit target field works out the units needed to earn a specific profit, not just to break even.

How to lower your break-even point

The table shows the effect of four common changes using your own numbers. Raising the price slightly is often the strongest lever because it lifts the margin on every unit, while discounts raise break-even faster than most owners expect.

  • Raise the price or offer higher-value bundles.
  • Negotiate with suppliers or move to cheaper packaging and shipping to cut variable cost.
  • Review subscriptions, rent and costs that do not support sales.

Frequently asked questions

What are fixed and variable costs?

Fixed costs are paid however much you sell (rent, base salaries, subscriptions). Variable costs rise with each unit (materials, shipping, payment fees).

What if the price is below the variable cost?

You will never break even because every sale deepens the loss. Adjust the price or the cost.

What is the margin of safety?

It is how far your expected sales can fall before you start losing money. The larger it is, the more resilient your business.

How do I lower the break-even point?

Raise the price, cut the variable cost or reduce fixed costs. Raising the price slightly is often the strongest move.

Does it suit a business with several products?

Use a weighted average price and unit cost, or calculate each product separately and share the fixed costs between them.

Related tools

Profit Margin CalculatorROAS CalculatorCAC & LTV CalculatorAll tools →

Need this built around your business?

Web Maestro is a registered company in Amman that builds websites, stores and systems and improves their search visibility. Tell us about your project and we will suggest what fits.

Chat on WhatsAppContact form

How would you like to reach us?

Pick whatever is easiest. A senior team member will get back to you.

Call us now+962 789 123 421WhatsAppMessage us directly