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How Much Do I Need to Sell to Break Even?

With $8,000 in fixed monthly costs and a 40% contribution margin, you need $20,000 in monthly sales to break even.

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Try a scenario

Click to load — tweak from there.

Inputs

Result

Break-even revenue

$20,000

Break-even units

400

Contribution margin

40.0%

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How to use this

  1. 1Enter fixed costs per month ($).
  2. 2Enter price per unit ($).
  3. 3Enter variable cost per unit ($).
  4. 4Read your break-even revenue on the right — it updates as you type.
  5. 5Hit Share to keep the scenario or send it to someone.

About this calculator

Break-even revenue is the point where your contribution margin (sales minus variable costs) exactly covers your fixed costs, leaving zero profit and zero loss. This calculator divides fixed costs by your contribution margin percentage to find break-even revenue, and also shows break-even in units if you sell a single product at a known price and variable cost.

FormulaContribution Margin % = (Price − Variable Cost per Unit) ÷ Price. Break-Even Revenue = Fixed Costs ÷ Contribution Margin %. Break-Even Units = Fixed Costs ÷ (Price − Variable Cost per Unit).

Worked example

Using the values the calculator loads with:

Inputs

  • Fixed costs per month: 8000 $
  • Price per unit: 50 $
  • Variable cost per unit: 30 $

Results

  • Break-even revenue: $20,000
  • Break-even units: 400
  • Contribution margin: 40.0%

What each field means

Inputs

Fixed costs per month ($)
The fixed costs per month used in the calculation, measured in $. Starts at 8000 $ so you have a working example on load.
Price per unit ($)
The price per unit used in the calculation, measured in $. Starts at 50 $ so you have a working example on load.
Variable cost per unit ($)
The variable cost per unit used in the calculation, measured in $. Starts at 30 $ so you have a working example on load.

Results

Break-even revenue
Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
Break-even units
Returned as a whole number. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
Contribution margin
Returned as a percentage. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.

FAQ

How much do I need to sell to break even?

With $8,000 in fixed monthly costs, a $50 price, and a $30 variable cost per unit (40% contribution margin), you need $20,000 in monthly sales, or 400 units, to break even.

What's the difference between fixed and variable costs?

Fixed costs (rent, salaries, insurance) don't change with sales volume, while variable costs (materials, per-unit shipping, sales commissions) rise and fall directly with how much you sell.

Why does a higher contribution margin lower break-even revenue?

A higher margin means each dollar of sales contributes more toward covering fixed costs, so you need fewer total sales dollars to cover the same fixed cost base — this is why raising prices or cutting variable costs speeds up reaching break-even.

What happens to profit above the break-even point?

Every unit sold beyond break-even contributes its full margin straight to profit, since fixed costs are already fully covered — this is why sales beyond break-even are disproportionately valuable to overall profitability.

Accuracy and 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.

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APA
RevenueLab. (2026). How Much Do I Need to Sell to Break Even?. Retrieved from https://www.revenuelab.fyi/toolbox/how-much-do-i-need-to-sell-to-break-even
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<p>Source: <a href="https://www.revenuelab.fyi/toolbox/how-much-do-i-need-to-sell-to-break-even" target="_blank" rel="noopener">How Much Do I Need to Sell to Break Even? — RevenueLab</a> (2026).</p>
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Source: [How Much Do I Need to Sell to Break Even? — RevenueLab](https://www.revenuelab.fyi/toolbox/how-much-do-i-need-to-sell-to-break-even) (2026).