Break-Even Calculator

First work out the contribution margin per unit — your selling price minus the variable cost of one unit. Then divide your fixed costs by that margin: break-even units = fixed costs ÷ contribution margin per unit. Multiply the result by your price to get break-even revenue. Example: $20,000 of fixed costs, a $100 price and $60 of variable cost give a $40 contribution margin and a break-even point of 500 units, or $50,000 in revenue. The full formula is printed under “How is this calculated?”.

The contribution margin is what one unit contributes to your fixed costs after its own variable cost is paid: price − variable cost. Until the sum of those contributions equals your fixed costs you are making a loss; the unit where they match is the break-even point. That is why break-even moves far more when you change price or unit cost than when you change volume — the margin is the denominator. This calculator also shows the contribution margin ratio (margin ÷ price), which tells you what share of every sale is left to cover fixed costs.

The margin of safety is how far your expected volume sits above break-even, as a share of that volume: (expected units − break-even units) ÷ expected units. A margin of safety of 30% means sales could fall by almost a third before you start losing money. It is the single most useful number here for risk, because it turns the break-even point into a cushion you can compare against a bad quarter.

Yes — use an average unit. For a service, one “unit” can be a billable day, a retainer or an average project: put the price you charge for it in “Price per unit” and the cost you can only avoid by not selling it (contractor time, travel, licences) in “Variable cost per unit”. Salaries you pay regardless belong in fixed costs. The model assumes one average unit, so the result is only as representative as that average.

The pre-filled numbers are demonstration defaults that produce a realistic example — they are not claimed industry averages. Replace them with your own figures for an accurate result. Where a field is labelled as an assumption, adjust it to match your business; the methodology page lists every default and its status.

Calculating stores nothing: every calculation runs in your browser, there is no account, and nothing you type is sent while you calculate. Only if you download the PDF report do we receive the work email you enter plus a short summary of the inputs you modelled, so we can follow up — the privacy page states exactly what is kept.