Break-even Calculator

Calculate when your business becomes profitable. Free tool for small businesses and freelancers.

Monthly rent, salaries, insurance, etc.

Cost to produce/deliver one unit

Selling price per unit

Desired profit above break-even

Break-even Analysis

Break-even Point
0 units
Break-even Revenue
$0
Contribution Margin
$0
Contribution Margin Ratio
0%

Break-even Visualization

Total Costs $0
Revenue $0
Profit/Loss $0

What is Break-even Analysis?

Break-even analysis is a critical financial calculation that helps you understand when your business will become profitable. It identifies the exact point where your total revenue equals your total costs — meaning you're no longer losing money, but you haven't started making a profit yet.

Break-even Formula:

Break-even Units = Fixed Costs ÷ (Price per Unit - Variable Cost per Unit)

Example: Coffee Shop Break-even

Scenario: You're opening a small coffee shop.

  • Fixed Costs: $5,000/month (rent, utilities, salaries)
  • Variable Cost per Coffee: $1.50 (beans, milk, cup)
  • Price per Coffee: $4.50

Break-even Point: 1,667 coffees/month

Or about 56 coffees per day (30-day month)

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Frequently Asked Questions

What is a break-even point?

The break-even point is when your total revenue equals your total costs. At this point, you're neither making a profit nor a loss. It's a critical metric for understanding when your business becomes profitable.

How do I calculate break-even?

Break-even units = Fixed Costs ÷ (Price per Unit - Variable Cost per Unit). This tells you how many units you need to sell to cover all your costs.

Why is break-even analysis important?

Break-even analysis helps you set sales targets, price products effectively, understand your cost structure, and make informed business decisions about growth and profitability.

Can I save my break-even calculations?

Yes! Sign up for a free Finorly account to save all your calculations, track multiple scenarios, and access advanced planning tools.

Is this calculator free to use?

Absolutely! Our break-even calculator is completely free. No registration required. However, creating an account lets you save and track your calculations over time.

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