Calculate the minimum price needed to cover all costs. Enter fixed costs, variable costs, and expected sales volume to find your break-even price per unit and profitability at different price points.
The break-even price is the minimum amount you must charge per unit to cover all your costs — both fixed costs (rent, salaries, insurance) and variable costs (materials, shipping, commissions). Selling above this price generates profit; selling below it means you're losing money on every unit.
This calculator determines your break-even price by dividing fixed costs across your expected sales volume and adding variable cost per unit. It also shows how profit changes at different price points and helps you understand the relationship between volume, cost structure, and minimum viable pricing.
Entrepreneurs, finance teams, and small-business owners gain a competitive edge from accurate break-even price data when setting prices, forecasting revenue, or managing operational costs. Save this tool and revisit it each quarter to keep your financial plans aligned with current market realities.
From solo freelancers to mid-market companies, having reliable break-even price data supports stronger negotiations, tighter forecasting, and more confident strategic planning. Modify the inputs above to match your current business conditions and re-run the numbers as often as your market shifts.
From solo freelancers to mid-market companies, having reliable break-even price data supports stronger negotiations, tighter forecasting, and more confident strategic planning. Modify the inputs above to match your current business conditions and re-run the numbers as often as your market shifts.
Every business needs to know its floor price. This calculator prevents the common mistake of pricing based on variable cost alone while ignoring fixed overhead. It tells you exactly where profitability starts so you can set prices with confidence and justify them with data. Instant recalculation lets you test different assumptions side by side, giving you the confidence to act on data rather than gut instinct.
Break-Even Price = (Fixed Costs / Expected Units) + Variable Cost per Unit. At break-even: Revenue = Total Costs. Profit = (Price − BEP) × Units. Contribution Margin = Price − Variable Cost.
Result: $35.00 break-even price
Fixed cost allocation = $10,000 / 500 units = $20 per unit. Variable cost = $15 per unit. Break-even price = $20 + $15 = $35.00. At this price, total revenue ($17,500) exactly equals total costs ($10,000 fixed + $7,500 variable). Every dollar above $35 is pure profit.
Your break-even price is entirely determined by your cost structure and volume. Businesses with high fixed costs (manufacturing, SaaS) need substantial volume to bring break-even to a competitive level. Businesses with high variable costs (services, retail) have break-even prices closer to their cost regardless of volume. Understanding which category you fall into shapes your entire pricing strategy.
Break-even is just the starting point. Your target price should cover costs, deliver your desired profit margin, and remain competitive. A good rule of thumb: price at 1.5×2 to 3× your break-even price for healthy margins, depending on industry norms and the value you deliver.
Break-even price is the minimum price at a given volume. Break-even point is the minimum volume at a given price. They're inverse calculations of the same concept. This calculator focuses on finding the price, but the simulation table shows both dimensions.
Yes, always include a reasonable owner/founder salary in fixed costs, even if you're not currently paying yourself. This ensures the business can sustain fair compensation. Without it, your break-even analysis understates the true cost of operating.
Higher volume spreads fixed costs across more units, lowering the fixed cost per unit and reducing the break-even price. At very high volumes, the break-even price approaches the variable cost. This is why scale matters so much in manufacturing and SaaS.
For multi-product businesses, allocate fixed costs proportionally (by revenue share, unit share, or production time). Calculate break-even for each product separately. Alternatively, use a weighted-average contribution margin across your product mix.
If your break-even is below competitor prices, you have a cost advantage and pricing flexibility. If it's above, you must either differentiate to justify higher prices, reduce costs, or increase volume to lower the break-even. Don't price below break-even long-term.
At minimum, quarterly. Recalculate whenever significant cost changes occur: new hires, rent increases, supplier price changes, or material cost fluctuations. For businesses with volatile costs (seasonal, commodity-dependent), monthly recalculation is recommended.