Break-Even Calculator — Methodology

Step-by-step calculation

Find the number of units and total revenue you need to cover all costs and start making profit.

1. 1

   Enter monthly fixed costs

   List rent, salaries, insurance, and any cost that doesn't change with output, then total them in the Fixed Costs field.

2. 2

   Add variable cost per unit

   Materials, packaging, commission, and platform fees — the per-unit costs that scale with each sale.

3. 3

   Enter selling price per unit

   What you charge customers per unit sold.

4. 4

   Optionally add a target profit

   Enter a profit goal to see units needed to clear costs plus the target profit.

5. 5

   Read break-even units and chart

   The chart shows the revenue and total-cost lines crossing at break-even. Round units up — you don't break even at 399 if the result is 400.

Assumptions and overrides

Standard break-even formula (Fixed Costs / Contribution Margin per Unit). Region-agnostic — only the currency symbol changes.

Every region default on the calculator is editable. If your effective rate, fee, or threshold differs from the headline figure shown, type your own number into the field — the calculator recomputes instantly without leaving this page.

Review cadence and corrections

This methodology and the underlying rate defaults are reviewed at least annually, and immediately following any change to the headline rate from IRS, HMRC, or SARS. Every substantive update is recorded on the public changelog. Spotted an error? See the corrections policy for how to report it.

See the full editorial policy for the standards every page on BusCalcTools is held to.