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How much you have to sell before you earn anything.
How many units before the fixed costs are covered.
Break-even
- Contribution per unit
- €30.00
- Contribution ratio
- 60.0%
- Revenue at break-even
- €5,000.00
- Units to break even
- 100
Fixed costs and the answer share a period. Put in a month of costs and you get units per month; put in a year and you get units per year.
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How it works
Every unit sold contributes its price minus its variable cost towards the fixed costs. Break-even is simply fixed costs divided by that contribution. If the contribution is zero or negative the answer is that there is no break-even, and selling more makes it worse — the tool says so rather than printing a number.
Which costs go where
Fixed costs do not move with volume: rent, software, insurance, your own salary. Variable costs happen per unit: materials, shipping, payment fees, a subcontractor per job. Put a fixed cost in the variable column and the break-even comes out flattering and wrong.
Mind the period
The answer inherits the period you put the fixed costs in. A month of costs gives units per month; a year gives units per year. Mixing a monthly rent with an annual target is the commonest way to get an answer that is twelve times off.
Questions, answered
Is it free?
Yes, and unlimited.
Does it work for services?
Yes — treat a project or a day as the unit and its direct costs as the variable cost.
Why does it say it never breaks even?
Because the price is at or below the variable cost, so each sale loses money. Volume cannot fix that.
Can I include a profit target?
Yes. Enter it and the tool also shows the units needed to clear the costs and the target together.
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