Break-even is the line between losing money and making it. This tells you exactly how many sales. Or how much revenue. You need to cover your costs.
What this tool does
You enter fixed costs, your price, and the variable cost per sale; it calculates the units and revenue you need to break even.
Who it's for
Founders pricing a product or service who want to know the number that makes the month work.
How to use it. Step by step
- Enter fixed costs. Rent, salaries, tools. What you pay regardless of sales.
- Enter price and variable cost. What you charge and what each sale costs you.
- Read break-even. Units and revenue needed to cover everything.
- Add a profit target. See what it takes to clear a target, not just break even.
How to read your result
Your contribution margin (price minus variable cost) is the engine. The thinner it is, the more volume you need. If break-even looks impossible, the fix is usually price or margin, not volume.
Worked examples
The same tool behaves differently depending on what you put in. Here are 3 situations.
SaaS, low variable cost
Inputs: $50/mo price, $5 variable, $20k fixed.
What the tool shows: High contribution margin → relatively few customers to break even.
What to do: Focus on getting to that customer count.
Physical product
Inputs: $40 price, $25 COGS, $30k fixed.
What the tool shows: Thin margin → far more units needed.
What to do: Look at COGS or price before chasing volume.
Services with a profit target
Inputs: Day-rate model, target profit added.
What the tool shows: Shows billable days needed to clear a target, not just cover costs.
What to do: Price the day rate to hit the target at realistic utilisation.
Common questions
Fixed vs variable? Fixed costs don't change with sales; variable costs do.
What's contribution margin? Price minus variable cost. What each sale contributes to fixed costs.
Break-even looks impossible. Now what? Usually a pricing or margin problem, not a volume one.