Break-Even Calculator
Enter your fixed costs, selling price and variable cost per unit to see exactly how many units you need to sell to break even, plus the revenue and contribution margin behind it.
Your costs and price
Break-even units
125
Units to sell before you turn a profit
Break-even revenue
€12,500
Break-even units × price per unit
Contribution margin / unit
€40
Price minus variable cost per unit
Contribution margin %
40.0%
Margin as a % of price
What this means: You break even at about 125 units. A solid base to build margin on.
How to calculate your break-even point
Your break-even point is the number of units you need to sell before a product starts making money. The formula is fixed costs divided by contribution margin per unit. With €5,000 in fixed costs and a €40 contribution margin, you break even after 125 units, every sale beyond that is profit.
Contribution margin is the engine behind break-even. It's your selling price minus the variable cost of one unit, and it represents what each sale contributes toward covering fixed costs. A €100 product that costs €60 to make and ship has a €40 contribution margin, or 40%, the wider that margin, the fewer units you need to break even.
The two cost types behave very differently. Fixed costs, rent, salaries, software, stay flat whether you sell ten units or ten thousand. Variable costs, materials, packaging, payment fees, rise with every order. Break-even is simply the volume at which accumulated contribution margin finally cancels out your fixed costs.
Running break-even for a single product is easy; doing it for a whole catalog by hand is not. WISEPIM's Profitability analytics calculates contribution margin and break-even for every SKU automatically and surfaces the items that never break even, so you can act on the products quietly eroding your profit instead of guessing where the leaks are.
You ran break-even for one product.
WISEPIM's Profitability analytics computes contribution margin and break-even for every SKU in your catalog at once, flagging the products that never break even, so you can fix or drop them before they drain your margin.
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Frequently asked questions
How do I calculate the break-even point?
Break-even units = fixed costs ÷ contribution margin per unit. First subtract your variable cost per unit from your selling price to get the contribution margin, then divide your total fixed costs by that figure. At €5,000 fixed costs and a €40 contribution margin, you break even after 125 units.
What is contribution margin?
Contribution margin is the money each unit leaves over after covering its own variable costs, price minus variable cost per unit. It's the amount that 'contributes' toward paying off your fixed costs and, once you pass break-even, toward profit. A €100 product with €60 variable cost has a €40 contribution margin (40%).
What's the difference between fixed and variable costs?
Fixed costs stay the same no matter how much you sell, rent, salaries, software, insurance. Variable costs scale with each unit sold, materials, packaging, payment fees, shipping. Break-even tells you how many units of contribution margin you need to cover all those fixed costs.
How do I lower my break-even point?
Raise price, cut variable cost per unit, or reduce fixed costs, anything that widens the contribution margin pulls break-even down. Better product content helps on the price side: complete specs, persuasive descriptions and rich images justify higher prices and lift conversion, so you reach break-even on fewer units.
What's the difference between break-even in units and in revenue?
Break-even units is how many products you need to sell to cover fixed costs; break-even revenue is that same point expressed in money, units multiplied by your selling price. Units are easier for planning production and stock, while revenue is easier to compare against a sales target. This calculator shows both so you can use whichever frames the decision better.
Should I include my own time or salary in the costs?
Yes, if you want a true break-even. Treat a regular salary or owner's draw as a fixed cost, and any per-order labour, such as picking, packing or assembly, as a variable cost. Leaving your own time out makes break-even look lower than it is and hides the point where the business actually starts paying for itself.