How this break-even calculator works
This tool calculates how many sales you need to cover your fixed and variable costs. It helps small business owners understand pricing, profitability, and risk.
Frequently asked questions
What is a break-even point?
Your break-even point is when total revenue equals total costs. Below this point, your business loses money. Above it, you generate profit.
What counts as fixed costs?
Fixed costs are expenses that stay the same each month, like rent, software subscriptions, loan payments, salaries, and insurance.
What counts as variable costs?
Variable costs change with each sale, like materials, shipping, transaction fees, packaging, and hourly labor tied to fulfillment.
Why is my break-even sales number so high?
Break-even increases when fixed costs are high or when your contribution margin (price minus variable costs) is low. Raising price, lowering variable costs, or reducing fixed costs can help.
Is this calculator accurate?
This is a planning tool. Real-world results vary based on seasonality, returns, discounts, and changing costs.