Break-even Calculator
Calculate when your business becomes profitable. Free tool for small businesses and freelancers.
Monthly rent, salaries, insurance, etc.
Cost to produce/deliver one unit
Selling price per unit
Desired profit above break-even
Break-even Analysis
Break-even Visualization
Enter your costs and price to see the break-even chart
What is Break-even Analysis?
Break-even analysis is a critical financial calculation that helps you understand when your business will become profitable. It identifies the exact point where your total revenue equals your total costs — meaning you're no longer losing money, but you haven't started making a profit yet.
Break-even Formula:
Break-even Units = Fixed Costs ÷ (Price per Unit - Variable Cost per Unit)
Example: Coffee Shop Break-even
Scenario: You're opening a small coffee shop.
- Fixed Costs: $5,000/month (rent, utilities, salaries)
- Variable Cost per Coffee: $1.50 (beans, milk, cup)
- Price per Coffee: $4.50
Break-even Point: 1,667 coffees/month
Or about 56 coffees per day (30-day month)
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Frequently Asked Questions
What is a break-even point?
The break-even point is when your total revenue equals your total costs. At this point, you're neither making a profit nor a loss. It's a critical metric for understanding when your business becomes profitable.
How do I calculate break-even?
Break-even units = Fixed Costs ÷ (Price per Unit - Variable Cost per Unit). This tells you how many units you need to sell to cover all your costs.
Why is break-even analysis important?
Break-even analysis helps you set sales targets, price products effectively, understand your cost structure, and make informed business decisions about growth and profitability.
Can I save my break-even calculations?
Yes! Sign up for a free Finorly account to save all your calculations, track multiple scenarios, and access advanced planning tools.
Is this calculator free to use?
Absolutely! Our break-even calculator is completely free. No registration required. However, creating an account lets you save and track your calculations over time.
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