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Break-Even Calculator

Calculate how many units you need to sell to break even. See the break-even point in units, months, and revenue.

Enter Your Values

Using shared profile · 3,500/mo · EURedit on Dashboard

Start from a realistic scenario
Costs
Revenue
units

Results update automatically as you change values.

Decision Engine
Understand
Enter only what matters
Calculate
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Compare
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Hidden Costs
What you might forget
Scenarios
Best, expected, worst
Decide
Clear recommendation
Decision Verdict
Break-Even Units/mo
317

Your business breaks even at 317 units/month (€15833 revenue), which at 200 units/month takes 1.6 months.

Break-Even Units/mo
317
Break-Even Time
2 months
7 things you might be forgettingEstimate based on your inputs — not guaranteed financial advice.

Decision Engine

Confidence
45/ 100
Decision confidence
317

Break-Even Units/mo

Watch-outs
Sensitive to your assumptions

The outcome swings widely between best and worst cases. Tighten the key inputs before you rely on this.

Hidden costs add up

Easily-forgotten costs total about €43,500 a year — enough to change the answer.

Your action plan
  1. 1Pin down "Price/Unit" — it moves the result by up to 20, more than anything else.
  2. 2Budget for the 7 hidden costs before you commit.
  3. 3Sanity-check the worst case (-€5,500) — can you live with it?
  4. 4Adjust the inputs to match your real numbers, then revisit the verdict.

Your Results

Break-Even Units/mo
317
Break-Even Time
2 months
Break-Even Revenue
€15,833
Contribution Margin
€30
Gross Margin
60.0%
Net Margin
-35.0%
Monthly Profit
-€3,500
Margin of Safety
0.0%
Decision Summary

Your business breaks even at 317 units/month (€15833 revenue), which at 200 units/month takes 1.6 months. Your contribution margin is €30.00/unit (60% gross margin, -35% net margin). Monthly profit: €-3500 (YOU ARE LOSING MONEY). Total fixed costs are €9500/mo (incl. €3500 owner salary + €1000 marketing). Your margin of safety is 0% — this is dangerously thin. Over 3 years at 3% growth, cumulative profit is €-116277.

What-If Scenarios

Results update instantly
200 units
50 units2000 units
50
10500

Cost Breakdown

Fixed Costs
€5,00021.3%
Owner Salary
€3,50014.9%
Marketing
€1,0004.3%
Variable Costs
€4,00017.0%
Revenue
€10,00042.6%

Break-Even Chart (Revenue vs Costs)

€0€5.0K€10.0K€15.0K16111621263136
Monthly Revenue
Monthly Costs

Click chart to expand

Cumulative Profit Over Time

€-150K€-100K€-50.0K€0€50.0K00122.91666…0: €0.000: -€3,5001: -€44,3192: -€82,9132.9166666666666665: -€116,277

Click chart to expand

Monthly Economics

€-5.0K€0€5.0K€10.0K€15.0KRevenueFixed CostsVariableProfitRevenue: €10,000Fixed Costs: €9,500Variable: €4,000Profit: -€3,500

Click chart to expand

What You Might Be Forgetting

Hidden costs and factors that are easy to overlook but can significantly impact your decision.

Owner Salary

Many founders forget to include their own salary in fixed costs. At €3500/mo, this adds €42000/yr to your break-even point. Without paying yourself, your "profit" is illusory.

Est. annual
€42,000
Marketing Costs

Customer acquisition costs €1000/mo. If you stop marketing, sales may drop. Your true break-even includes this.

Est. annual
€12,000
Taxes

Profit is taxed at 20-30% for most businesses. Your €-42000/yr pre-tax profit becomes €-29400 after tax. Plan for this.

Seasonality

Most businesses have slow months. If sales drop 30% in off-season, your monthly profit falls to €-2450 — or could go negative.

Customer Churn

If you lose 5% of customers monthly, you need to acquire new ones just to maintain revenue. Factor in acquisition costs against churn.

Margin of Safety

Your margin of safety is 0% — you can lose 0% of sales before hitting break-even. This is thin; a downturn or new competitor could push you below break-even.

Growth Costs

Growing at 3%/yr requires more inventory, staff, and infrastructure. Rapid growth can consume cash even when profitable — the "growth trap."

These estimates are for informational purposes only and do not constitute financial advice. Actual results may vary based on factors not captured in this calculator.

How This Calculator Works

What this calculator does

This calculator finds the point where your business revenue equals total costs — the break-even point. It shows how many units and how many months it takes to start making profit.

How the calculation works

The contribution margin is price minus variable cost per unit. Break-even units = fixed costs / contribution margin. Break-even time = break-even units / monthly units sold.

Formula

Contribution Margin = Price - Variable Cost
Break-Even Units = Fixed Costs / Contribution Margin
Break-Even Months = Break-Even Units / Monthly Units
Monthly Profit = (Margin × Units) - Fixed Costs

Example

Fixed costs €5,000/month, price €50, variable cost €20. Margin = €30. Break-even = 167 units. At 200 units/month, break-even in 0.83 months. Monthly profit = €1,000.

How to Use This Calculator

  1. 1
    Enter your numbers

    Fill in the inputs for Break-Even Calculator. Defaults are realistic starting points — replace them with your actual figures.

  2. 2
    Understand the calculation

    The contribution margin is price minus variable cost per unit. Break-even units = fixed costs / contribution margin. Break-even time = break-even units / monthly units sold.

  3. 3
    Review results and scenarios

    Check metrics, cost breakdown, comparison tables, and best / expected / worst scenarios. Use sliders to stress-test assumptions.

  4. 4
    Decide with the verdict

    Read the decision engine recommendation and FAQ. Example: Fixed costs €5,000/month, price €50, variable cost €20. Margin = €30. Break-even = 167 units. At 200 units/month, break-even in 0.83 months. Monthly profit = €1,000.

Factors to Consider

  • Fixed costs include rent, salaries, software, insurance
  • Variable costs include materials, shipping, payment processing
  • Seasonal businesses may have months below break-even
  • Price changes and cost increases shift the break-even point
  • Include owner salary in fixed costs for a realistic picture

Common Mistakes

  • Forgetting to include owner salary in fixed costs
  • Underestimating variable costs (shipping, fees, returns)
  • Not accounting for seasonality
  • Assuming constant sales — real businesses have variance
  • Ignoring customer acquisition costs

Frequently Asked Questions

What is contribution margin?+

Contribution margin is the amount each sale contributes to covering fixed costs, after deducting variable costs. It is price minus variable cost per unit.

What is a good break-even point?+

It depends on your industry. A lower break-even (fewer units or less time) is better. Compare break-even to your actual sales capacity to assess viability.

This calculator provides estimates for informational purposes only and does not constitute financial, investment, tax, or legal advice. Always consult a qualified professional before making important financial decisions.

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