Break-Even Calculator
How many sales until I break even?
Know exactly when you'll break even—and plan your inventory, pricing, and growth accordingly.
Your costs
How to use this calculator
Example numbers · Break-Even Units / Month
400Excellent
Revenue vs costs
Break-Even Units / Month
400
Monthly units needed to cover the fixed and per-unit costs entered. Daily target: 14 · weekly: 93.
What we’d check next
We’d compare this target with the units you actually sell each month.
View chart and context
| Units | 400 |
|---|---|
| Revenue | $20,000 |
| Total Costs | $20,000 |
Values update as you type.
Your results
Break-Even Revenue
$20,000
monthly revenue targetContribution Margin
50.0%
$25 per unitDaily Units Needed
14
units per dayWeekly Units Needed
93
units per weekContribution Margin Benchmarks
Where your contribution margin (CM) falls determines how quickly you can reach break-even. These are the same bands our Contribution Margin calculator uses. Here, contribution is your price minus the per-unit costs you entered, so include ad spend per order in variable cost for a like-for-like reading.
Your CM: 50.0%
How you stack up
Global D2C planning band. Targets vary by vertical — apparel 30-45%, beauty 40-55%, food and beverage 20-30%, electronics 15-25%. Benchmarks are directional, not a guarantee; use them as a comparison point alongside your own historical data.
You vs. the planning band
Your Contribution Margin
50.0%
Planning band
A chosen anchor, not measured
Unlock below to see how you compare.
SEE HOW YOU COMPARE
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See where your numbers land on our planning bands. We’ll email you this report too.
How we calculate the sales volume needed to cover your costs.
Price per Unit − Variable Cost per UnitExample: $50 − $25 = $25 per unit
Fixed Costs ÷ Contribution MarginExample: $10,000 ÷ $25 = 400 units
Break-Even Units × Price per UnitExample: 400 × $50 = $20,000
Break-Even Units ÷ 30 daysExample: 400 ÷ 30 = 13.3 units/day
((Current Sales − Break-Even) ÷ Current Sales) × 100Example: ((600 − 400) ÷ 600) × 100 = 33%
More things we’d check
The target is 400 units per month. We’d compare it with actual monthly unit sales.
We’d try a quieter month in the model to see how much room remains.
We’d check each product’s contribution before using a store-wide average.
Check contribution per orderAbout break-even
What is a break-even point?
Your break-even point is the number of sales it takes to cover all your costs for the month. Below it you lose money on the month; every sale above it is profit. Knowing it turns "are we doing OK?" into a number you can check each week, and shows how much a price change or a cheaper supplier would move it.
Formula
Break-even units = monthly fixed costs ÷ (price − variable cost per unit)
A worked example
- Your fixed costs are $10,000 a month. You sell at $50 and each unit costs $25 to make, pack and ship.
- Each sale leaves $25 (50% of the price).
- $10,000 ÷ $25 = 400 units, or $20,000 in sales, to break even.
- You sell 500 a month, so sales could fall 20% before you stop covering costs. That lands in Comfortable on the ladder.
How far above break-even is enough?
Breaking even is the floor, not the goal. What matters is your safety margin: how far sales can drop before you stop covering costs. Add your current monthly sales above and the calculator grades it on this ladder:
- Below 0%
- Below Break-Even.
- 0–20%
- Thin.
- 20%+
- Comfortable.
Without current sales, the calculator grades your contribution margin instead, on the same ladder as the contribution margin calculator.
Break-even units vs break-even ROAS
- Break-even units is how many sales cover the whole business for a month, fixed costs included.
- Break-even ROAS (return on ad spend) is the ad return where one order’s margin just pays for the ad that won it. It ignores fixed costs, so clearing it doesn’t mean the month is profitable. Find your break-even ROAS with the ROAS calculator
- Contribution margin is the per-order number both depend on. Raise it and both fall. Work out profit per order with the contribution margin calculator
Frequently asked questions
Common questions about break-even analysis and profitability
Learn these key metrics
The profit earned on each unit sold after deducting all variable costs....
The percentage of revenue remaining after subtracting the cost of goods sold (CO...
The average dollar amount customers spend per order/transaction....
The total cost of acquiring a new paying customer, including all marketing and s...
The revenue generated for every dollar spent on advertising....
98 units
To cover monthly costs
$4,900 monthly fixed costs ÷ $50 contribution per unit ($100 price − $50 variable cost).
Keep going
Profit Margin Calculator
Analyze your cost structure and contribution margins.
Calculate your profit marginsContribution Margin Calculator
See what each order actually contributes after all variable costs.
Find your per-order profitROAS Calculator
Ensure your advertising is actually profitable.
Calculate your true ROASRead the guide: How to calculate your break-even ROAS
FOUND YOUR NUMBER
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