Break-even point
Calculate the sales needed to cover costs.
Fixed and variable costs must cover the same period. Unit margin must be positive. Units round up to the next whole unit; taxes and financing costs are excluded.
Common questions
How many units do I need to sell to break even?
The calculator divides fixed costs by the selling price per unit minus variable cost per unit, then rounds up to a whole unit. This is the sales volume needed to cover the entered costs under a constant-price, constant-cost scenario. It does not estimate actual demand.
Why must the selling price exceed the variable cost per unit?
Each sale must leave a positive contribution toward fixed costs. If the selling price is equal to or below the variable cost, selling more units cannot cover positive fixed costs under these assumptions. The calculator therefore asks for a positive unit margin before producing a result.
Are VAT, tax and transaction charges included in the break-even result?
They are not calculated automatically. Keep the price and cost inputs on a consistent basis, and include applicable per-unit charges in the relevant costs. The model does not determine the tax treatment of a sale or convert a gross selling price into a net price.
Does reaching break-even guarantee a profitable business?
No. The result covers the fixed and variable costs you entered. Discounts, returns, capacity limits, financing costs and changes in demand or costs can alter the outcome. A break-even estimate is a scenario for checking assumptions, not a forecast of sales or a promise of profit.
A global market. Local rules.
Check the authority responsible for your country and the legal entity providing the service. Keep purchase, sale, swap and transfer records. Your tax residence and the product you use determine which guidance applies; the links below are general starting points.