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Small Business Break-Even Calculator

Short answer: break-even sales = monthly fixed costs ÷ (price − variable cost per sale). To also hit a profit goal, add the goal to your fixed costs. Enter your numbers below; everything is calculated in your browser and nothing is saved or sent anywhere.

What a price change does to your numbers

How to use your result

1. Turn the monthly number into a daily one. If you need 120 sales a month and trade 22 days, that is about 5.5 a day. Ask honestly whether your current marketing can deliver it.
2. Test the price rows. A small price increase often cuts the sales you need far more than a small cost saving.
3. Trim the biggest fixed cost first. Rent and recurring subscriptions move the number the most.
4. Re-run it each quarter or whenever your costs or prices change.

Common break-even mistakes

• Leaving out your own pay. Break-even is not the same as being able to live on the business.
• Forgetting card and platform fees. They are variable costs that quietly shrink your margin.
• Using the list price. Use your average price after discounts, since that is what you really collect.
• Ignoring quiet months. Plan with a buffer so a slow season does not sink you.

Frequently asked questions

What is a break-even point?

It is the number of sales (or the revenue) at which your income exactly equals your costs, so you make neither a profit nor a loss. Every sale after that point adds to your profit.

How do I calculate break-even sales?

Divide your monthly fixed costs by the contribution margin per sale. The contribution margin is your price minus the variable cost of making that sale (materials, card fees, supplies, travel). For example, $3,000 fixed costs ÷ $40 margin = 75 sales a month.

What counts as a fixed cost and what is a variable cost?

Fixed costs stay the same however much you sell: rent, insurance, software, loan payments, your own wages if you pay yourself a set amount. Variable costs rise with each sale: products, packaging, payment processing fees, commissions and delivery.

Should my own pay be in the fixed costs?

Yes. If you leave out the income you need to live on, the result only tells you when the business stops losing money, not when it supports you. Use the profit goal box to add the take-home pay you want on top of costs.

What if my break-even number looks impossible?

You have three levers: raise your price, cut variable costs, or reduce fixed costs. Even a small price rise can lower the number a lot, because the whole increase goes straight into your margin.

Does this calculator give tax or accounting advice?

No. It is a planning estimate based on the numbers you enter. Sales tax / VAT and income tax are not included, so check with an accountant or the IRS / HMRC guidance.