Contribution margin
What remains after variable cost and fees. It first covers fixed costs, then generates profit.
Finance
Break-even calculator
See how much you need to sell to cover costs, evaluate your forecast and reach a target profit.
Sales needed to avoid a loss
Calculate your break-even point
Use values from the same period. The calculator does not convert monthly, annual, or project amounts.
Publicidad
How to interpret the result
Break-even is a threshold. These metrics explain what moves it and how far away you are.
Practical minimum
The exact calculation may have decimals. The practical minimum is rounded up to avoid falling below break-even.
Margin of safety
Compares expected sales with break-even and shows how far they could fall before a loss.
Which costs to include
Separate per-sale costs from costs that exist throughout the period. Enter each cost once and use the same tax treatment for every amount.
When no break-even point exists
If price does not cover variable cost and fees, selling more increases the loss. Improve contribution per sale first.
To review the profitability of an individual sale, use the margin and markup calculator. To evaluate a project's total return, see the ROI calculator.
Frequently asked questions
What is the break-even point?
It is the sales level where revenue exactly covers entered fixed costs, variable costs and fees. Above it there is estimated profit; below it there is a loss.
Which fixed and variable costs should I include?
Fixed costs exist even without sales, such as rent or licenses. Variable costs rise with each sale, such as materials, packaging or directly related labor.
What is contribution margin?
It is what remains from each sale after variable cost and fees. This amount first covers fixed costs and then generates profit.
What is the margin of safety?
It measures how far expected sales can fall before break-even. It can be negative when the forecast does not yet cover costs.
Why are units rounded up?
Selling less than the exact calculation misses the target. The practical minimum is rounded to the selected sellable increment.
What if variable cost and fees exceed price?
There is no break-even point: every sale increases the loss. Raise the price, reduce variable costs or lower the fee.
How do I calculate break-even for several products?
This version analyzes one homogeneous unit. You can use a representative average price and variable cost, but a product mix requires weighting each product's contribution.
Should I enter amounts with or without tax?
Be consistent: enter all amounts either with tax or without tax. The calculator does not calculate taxes automatically.