Use Break-Even Calculator - free
Frequently asked questions
What is the contribution margin?
The amount each unit sold contributes toward covering fixed costs, calculated as price minus variable cost per unit - a higher margin means you break even faster.
What counts as a fixed cost?
Costs that don’t change with sales volume, like rent, salaries, or software subscriptions - as opposed to variable costs like materials, which scale with each unit produced.
What if my price is lower than my variable cost?
You would lose money on every unit sold and could never break even regardless of volume - the tool flags this case directly.