Break-Even Calculator

Break-even units = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit). The denominator is called the contribution margin per unit. Multiply break-even units by the selling price to get break-even revenue.

Fixed costs stay the same regardless of output: rent, salaries, insurance, loan payments. Variable costs change with each unit produced: raw materials, packaging, shipping per item, sales commissions.

Contribution margin is selling price minus variable cost per unit. A higher contribution margin means each sale covers more fixed costs, so you break even faster. Raising prices or cutting variable costs both improve it.

Yes. Treat your fixed overhead (office, software, salaries) as fixed costs. Your variable cost per unit is the cost to deliver one service engagement (materials, contractor fees, etc.), and the selling price is what you charge per engagement.