What Is Break-Even Point?
The break-even point is where your total revenue equals your total costs. At this point, you are not making a profit or a loss — you’re simply covering expenses.
Break-Even Formula
- Contribution Margin / Unit = Price per unit − Variable cost per unit
- Break-even units = Fixed costs ÷ Contribution margin per unit
- Break-even revenue = Break-even units × Price per unit
How to Use This Break-Even Calculator
- Enter your fixed costs (rent, salaries, subscriptions).
- Enter your variable cost per unit (product cost, packaging, per-unit shipping).
- Enter your selling price per unit.
- Click Calculate to get break-even units and break-even revenue.
Why Break-Even Matters for eCommerce & Businesses
Break-even helps you set realistic sales targets, plan ad budgets, and understand whether your pricing leaves enough room for profit. If your price is too close to your unit cost, your break-even units can become extremely high.