Fixed costs do not change with each unit
Think booth rental, subscriptions, equipment, or other recurring costs.
PROFIT TOOL
Break-Even Calculator
Find how many units you need to sell to cover fixed costs, then see the volume required to reach a target profit.
Calculator
Enter your numbers below. Results update automatically.
$
Booth, software, rent, setup, or other costs that do not change per unit.$
$
$
Break-even is a planning model; include any major recurring costs that your chosen scope should recover.
Results
Use these numbers as a starting point for your pricing decision.
Break-even units
0
Round up to the next whole unit because you cannot sell a fraction of a finished product.
Contribution / unit$0.00
Break-even revenue$0.00
Units for target profit0
Revenue for target profit$0.00
REAL-WORLD EXAMPLE
Example: finding the break-even point
Suppose fixed costs are $1,200, selling price is $25 per unit, and variable cost is $10. Contribution margin is $15, so you need 80 units to cover fixed costs. Test different prices and variable costs to see how sensitive your break-even point is.
Practical tip: Use your own costs and fee assumptions before making a pricing decision.
HOW IT WORKS
Find the sales volume where profit reaches zero
Break-even analysis separates fixed costs from variable costs and shows how many units your contribution per sale needs to cover.
Variable cost follows the sale
Materials, packaging, and some shipping or payment costs may rise as you sell more.
Contribution drives break-even
Selling price minus variable cost is the amount each unit contributes toward fixed costs.
FORMULA
Understand the calculation
Knowing the formula makes it easier to adjust the tool to your own business model.
Break-even units = fixed costs ÷ (selling price − variable cost)
Target-profit units = (fixed costs + target profit) ÷ (selling price − variable cost)
FAQ
Common pricing questions
What happens if selling price equals variable cost?
Contribution per unit becomes zero, so there is no unit volume that can cover fixed costs.
Why are units rounded up?
Break-even is calculated mathematically, but real products are sold in whole units.
Can I use this for a craft fair?
Yes. Put booth and event expenses into fixed costs and your per-item production cost into variable cost.
RELATED TOOLS
Keep working the numbers
Use these related calculators to check the next part of your pricing decision.
Want a repeatable pricing workflow?
Use the free calculator for a quick estimate, then move your products into the full Pro Excel workflow.