Break-Even Calculator for Small Business
See how much you must sell before you make a profit. Enter your fixed costs, price and cost per sale to get your break-even point and the sales needed for your profit goal.
How the break-even calculator for small business works
Break-even is the number of sales where revenue exactly covers every cost. Below it you lose money, above it every extra sale adds profit. This break-even calculator for small business shows that number in sales and in dollars.
Fixed costs stay the same whatever you sell, such as rent and insurance. Variable costs rise with each sale, such as materials. Keeping them separate is what makes the math work.
Use real numbers from your last three months. If your break-even looks too high, raise the price, cut fixed costs or lower the cost per sale and run it again.
The formulas
Frequently asked questions
How do you calculate break-even?
Divide your fixed costs by the profit you make on each sale (price minus variable cost).
What is contribution margin?
It is the share of each sale left after variable costs, which goes toward fixed costs and profit.
What is the safety margin?
It shows how far your expected sales are above break-even, as a percentage.
Can I use this for a service business?
Yes. Treat each job as a sale and use the average price and average cost per job.
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Estimates only. Results depend on the numbers you enter and are not financial, tax or legal advice.