Break-even Calculator
Before you can plan ad spend, hiring, or a new product launch, you need to know your break-even point - the number of units that covers your fixed costs before a single rupee counts as profit. This calculator turns your monthly overhead and per-unit economics into that one number.
What each field means
- Monthly Fixed Costs
- Costs that don't change with sales volume - rent, salaries, software subscriptions, retainer fees. Leave out variable costs like COGS or shipping; those belong in the next field.
- Selling Price / Unit
- Your average selling price per unit across whatever channel you're modelling.
- Variable Cost / Unit
- Everything that scales with each sale - cost of goods, marketplace commission, shipping, packaging - added together per unit.
- Other Variable Cost / Unit
- Any extra per-unit cost not already folded into Variable Cost / Unit - a percentage-based ad fee, insurance, storage overage, or anything else specific to your business.
How to use the Break-even Calculator
- Add up your real monthly fixed costs - rent, salaries, tools, retainers.
- Enter your average selling price per unit.
- Enter your total variable cost per unit (COGS + fees + shipping + packaging combined), plus anything else in Other Variable Cost / Unit.
- Read the break-even unit count and revenue - anything sold beyond that point is where real profit starts.
The formula
Frequently asked questions
What counts as a fixed cost vs. a variable cost?
Fixed costs stay the same regardless of how many units you sell that month - rent, salaries, software. Variable costs scale with each order - cost of goods, marketplace commission, shipping, packaging.
What does contribution margin mean?
It's the amount each unit contributes toward covering fixed costs, after variable costs are subtracted - selling price minus variable cost per unit. A higher contribution margin means you break even faster.
Why does the calculator say I'll never break even?
That happens when your variable cost per unit equals or exceeds your selling price - every sale loses money before fixed costs are even considered, so no volume of sales can recover them.
What if I have a variable cost that isn't listed here?
Use the Other Variable Cost / Unit field to add anything per-unit that isn't already rolled into your main Variable Cost figure, so your break-even point reflects every real cost, not just the obvious ones.