Break-Even Analysis

How many sales to break even?

Enter your fixed costs, price, and variable cost per unit. See the unit volume and revenue needed to cover costs and hit your profit target.

109

units to break even

$5,341 revenue

Costs & pricing

Break-even & target

Contrib. margin

$37.00

Margin %

76%

Break-even units

109

Break-even $

$5,341

Target units

163

Target revenue

$7,987

Freedom Coach™

You need to sell 109 units/mo to break even.

Each unit contributes $37.00 (76% margin). Hit $7,987/mo revenue for your $2,000 profit goal.

  • Healthy margin. Focus on volume and customer retention.
  • Track fixed vs variable weekly — most owners misclassify costs and get surprised.
  • A 10% price increase usually beats a 10% cost cut — test before assuming customers will churn.

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Frequently asked questions

What is a break-even point?

The number of units (or revenue) you must sell to cover all fixed and variable costs. Below break-even you lose money on volume; above break-even each sale is profit.

What's contribution margin?

Price minus variable cost per unit. If a $49 product costs $12 to make, contribution margin is $37 (or 76%). Every unit contributes $37 toward fixed costs, then profit.

How do I use break-even to price?

Set a target profit, add it to fixed costs, then divide by contribution margin. That's your monthly unit target — reverse-engineer channels and traffic to hit it.

Should I chase volume or margin?

Margin almost always wins for small businesses. A 10% price increase usually beats a 10% cost cut and requires zero extra operational effort.

How often should I recalculate break-even?

Quarterly, or whenever costs shift by 10%+. Rising raw materials, new subscriptions, or a hiring wave all move the number.

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