Break-even is the line between losing money and making it. This tells you exactly how many sales — or how much revenue — you need to cover your costs.
What this tool does
You enter fixed costs, your price, and the variable cost per sale; it calculates the units and revenue you need to break even.
Who it's for
Founders pricing a product or service who want to know the number that makes the month work.
How to use it — step by step
- Enter fixed costs. Rent, salaries, tools — what you pay regardless of sales.
- Enter price and variable cost. What you charge and what each sale costs you.
- Read break-even. Units and revenue needed to cover everything.
- Add a profit target. See what it takes to clear a target, not just break even.
How to read your result
Your contribution margin (price minus variable cost) is the engine — the thinner it is, the more volume you need. If break-even looks impossible, the fix is usually price or margin, not volume.
Worked examples
The same tool behaves differently depending on what you put in. Here are 3 situations.
SaaS, low variable cost
Inputs: $50/mo price, $5 variable, $20k fixed.
What the tool shows: High contribution margin → relatively few customers to break even.
What to do: Focus on getting to that customer count.
Physical product
Inputs: $40 price, $25 COGS, $30k fixed.
What the tool shows: Thin margin → far more units needed.
What to do: Look at COGS or price before chasing volume.
Services with a profit target
Inputs: Day-rate model, target profit added.
What the tool shows: Shows billable days needed to clear a target, not just cover costs.
What to do: Price the day rate to hit the target at realistic utilisation.
Common questions
Fixed vs variable? Fixed costs don't change with sales; variable costs do.
What's contribution margin? Price minus variable cost — what each sale contributes to fixed costs.
Break-even looks impossible — now what? Usually a pricing or margin problem, not a volume one.