{
  "slug": "break-even",
  "title": "Break-Even Calculator",
  "heading": "Break-Even Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/break-even",
  "summary": "Units and revenue you need before you start making money.",
  "description": "Break-even is where contribution margin finally covers fixed costs. The lever most owners miss is price: a 10% price rise cuts the break-even volume far faster than a 10% cost cut.",
  "formula": "Break-even units = Fixed costs ÷ (Price − Variable cost per unit).",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=break-even",
  "inputs": [
    {
      "id": "fixed",
      "label": "Fixed costs per month",
      "kind": "number",
      "hint": null,
      "default": 12000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "price",
      "label": "Price per unit",
      "kind": "number",
      "hint": null,
      "default": 79,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "variable",
      "label": "Variable cost per unit",
      "kind": "number",
      "hint": null,
      "default": 23,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "target",
      "label": "Target monthly profit",
      "kind": "number",
      "hint": null,
      "default": 5000,
      "unit": "$",
      "min": 0,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "units",
      "label": "Break-even units per month",
      "format": "number",
      "hint": null,
      "primary": true
    },
    {
      "id": "revenue",
      "label": "Break-even revenue",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "cm",
      "label": "Contribution margin per unit",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "cmPct",
      "label": "Contribution margin",
      "format": "percent",
      "hint": null,
      "primary": false
    },
    {
      "id": "targetUnits",
      "label": "Units to hit your profit target",
      "format": "number",
      "hint": null,
      "primary": false
    },
    {
      "id": "perDay",
      "label": "Units per day",
      "format": "decimal",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Fixed costs per month: 12000 $",
      "Price per unit: 79 $",
      "Variable cost per unit: 23 $",
      "Target monthly profit: 5000 $"
    ],
    "outputs": [
      "Break-even units per month: 215",
      "Break-even revenue: $16,985.00",
      "Contribution margin per unit: $56.00",
      "Contribution margin: 70.9%",
      "Units to hit your profit target: 304",
      "Units per day: 7.2"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter fixed costs per month ($).",
      "Enter price per unit ($).",
      "Enter variable cost per unit ($).",
      "Enter target monthly profit ($).",
      "Read your break-even units per month on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "fixed": 7000,
        "price": 47,
        "variable": 14,
        "target": 3000
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "fixed": 12000,
        "price": 79,
        "variable": 23,
        "target": 5000
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "fixed": 19000,
        "price": 126,
        "variable": 37,
        "target": 8000
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "How does the break-even calculator work?",
      "a": "Break-even is where contribution margin finally covers fixed costs. The lever most owners miss is price: a 10% price rise cuts the break-even volume far faster than a 10% cost cut. The underlying maths is: Break-even units = Fixed costs ÷ (Price − Variable cost per unit)."
    },
    {
      "q": "What do I need to enter?",
      "a": "4 values: fixed costs per month, price per unit, variable cost per unit, and target monthly profit. Each field starts with a sensible default, so you can change one number at a time and watch the result move."
    },
    {
      "q": "What does the break-even units per month result mean?",
      "a": "It is returned as a whole number and updates live as you edit the inputs, so you can compare two or three versions of a scenario in a few seconds."
    },
    {
      "q": "Is this calculator free, and do I need an account?",
      "a": "Yes, it's free, and no account is required. Nothing you type is stored on our servers — the maths runs entirely in your browser."
    },
    {
      "q": "How accurate is the result?",
      "a": "It applies the standard formula exactly, so the arithmetic is precise. Results are estimates before tax, fees, and inflation unless an input explicitly covers them."
    },
    {
      "q": "Who is this tool for?",
      "a": "It's built for anyone comparing money scenarios before committing — budgeting a payment, sanity-checking a quote, or seeing what a change in rate or term actually costs."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/margin",
    "https://www.revenuelab.fyi/toolbox/markup",
    "https://www.revenuelab.fyi/toolbox/burn-rate"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Break-Even Calculator (https://www.revenuelab.fyi/toolbox/break-even)"
}