How it works
Break-even revenue is the monthly sales amount where total revenue exactly equals total costs — you are neither making nor losing money. The formula divides fixed costs by the contribution margin percentage (the share of each sale that contributes to covering fixed costs after variable costs are subtracted). If your fixed costs are $25,000 per month and your contribution margin is 70%, break-even revenue is $25,000 ÷ 0.70 = $35,714. Anything above that is profit. The calculator also shows the break-even in units and a daily revenue target, which is more actionable for sales teams than a monthly figure. Every field in this calculator exists for a reason. Enter Monthly fixed costs, Variable cost per unit, Selling price per unit, Break-even revenue, Units to break even, All inputs stay in your browser. Adjust one field at a time to see which lever moves the answer most — the formula on this page lets you verify every step against the defaults shown in the worked example.
Formula
Contribution margin = (Price − Variable cost) ÷ Price | Break-even revenue = Fixed costs ÷ Contribution margin | Break-even units = Fixed costs ÷ (Price − Variable cost)
Tips
- Include ALL fixed costs: rent, salaries, insurance, subscriptions, loan payments, depreciation.
- Variable costs include materials, direct labor, shipping, and commissions — costs that scale with each sale.
- The contribution margin tells you how much of each dollar of revenue is available to cover fixed costs and profit.
- Break-even is a floor, not a goal — you need revenue above break-even to generate profit.
Frequently asked questions
- What is break-even revenue?
- Break-even revenue is the monthly sales amount where total revenue equals total costs (fixed + variable). At this point, the business is neither profitable nor losing money. Every dollar above break-even is profit.
- How do I calculate break-even revenue?
- Divide your monthly fixed costs by your contribution margin percentage. Contribution margin = (Price − Variable cost per unit) ÷ Price. Example: $25K fixed costs ÷ 70% contribution margin = $35,714 break-even revenue.
- What is a good contribution margin?
- Higher is better. SaaS businesses often have 70–85% contribution margins. Services 50–70%. Manufacturing 25–40%. Retail 25–45%. The higher the margin, the less revenue you need to break even.