Break-Even Analysis Calculator

What is this?

Break-even analysis determines the point at which total revenue equals total costs — meaning the business stops losing money and starts generating profit. The break-even point is calculated by dividing fixed costs by the contribution margin (the difference between selling price and variable cost per unit). For subscription businesses, "units" are equivalent to customers or subscriptions.

Why it matters

Understanding your break-even point gives you a clear target for growth. It tells you exactly how many customers or units you need before your business model works. Investors use break-even analysis to assess how realistic your path to profitability is and how much capital you need to get there. It also helps you evaluate pricing changes — raising prices by even $10 can dramatically change your break-even point.

How to use this calculator

Enter your total monthly fixed costs (rent, salaries, software, etc.), price per unit or subscription, variable cost per unit (COGS, transaction fees, support costs per customer), and current monthly sales volume. The calculator shows your break-even point in units and revenue, your contribution margin, and estimated time to break even at your current sales pace.