Your break-even point is the number of units you need to sell to cover all your costs — the point where profit is exactly zero. Sell one more and you're in profit; one fewer and you're at a loss. Use the free calculator below, then see the formula.
= $2,000 ÷ ($50 − $30) → $5,000 in sales
The break-even formula
Break-even units = Fixed costs ÷ (Price − Variable cost)
- Fixed costs — costs that don't change with each sale: rent, salaries, software, subscriptions. These are your operating expenses.
- Price — what you sell one unit for.
- Variable cost — what each sale costs you:COGS, plus per-order costs likepayment fees and shipping.
The gap between price and variable cost is your contribution margin — how much each sale contributes toward covering fixed costs.
Break-even in revenue
Break-even revenue = Break-even units × Price
Multiply the units by your price to get the sales figure you need to hit before you make a cent of profit.
Worked example
Fixed costs $2,000/month, price $50, variable cost$30. Contribution margin = $20 per unit. Break-even = $2,000 ÷ $20 =100 units, or $5,000 in sales. Below that you're funding the business; above it, every unit adds $20 of profit.
Lower your break-even
Three levers move it: raise price, cut variable cost, or cut fixed cost. Even small changes compound — a $2 cut in variable cost above lifts the contribution margin to $22 and drops break-even to 91 units. To see the effect on real orders, watch your net vs gross profit and your margins.
Track it with your real numbers
A calculator uses estimates; your real costs shift constantly. ProfitVaultpulls your actual COGS, fees, shipping and expenses from your store, so you can see when you've crossed break-even for any period — not guess it.