Break-even calculator
How much do you need to sell each month to cover your fixed costs? And what is left when you sell more? Enter your costs and price.
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Profit at different volumes
How to read the result
The break-even point is the turnover at which you earn back exactly your fixed costs. Below it you make a loss, above it you make money. The sum: fixed costs divided by the margin per unit (selling price minus variable cost per unit).
- Fixed costs exist even when you sell nothing: rent, fixed wages, subscriptions, loan repayments, insurance.
- Variable costs rise with every sale: purchasing, packaging, delivery, commission.
- Use prices without VAT. The VAT you charge goes to the tax office; it is not turnover.
- If you buy in dollars, use the rate you actually pay. A higher rate lowers your margin and moves the break-even point up.
A helpful tool, not tax or legal advice. Check important amounts.
Frequently asked questions
What if my margin per unit is zero or negative?
Then you never reach break-even, however much you sell. Raise the price, lower purchasing or variable costs, or drop that product.