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Break-Even Calculator

Find the units & revenue needed to cover all costs.

Cost structure

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Leave at 0 to skip margin-of-safety analysis.

Break-even point

How to use this calculator

  1. Sum your fixed costs for the period: rent, salaries, subscriptions, insurance.
  2. Enter the price per unit you charge customers (or ARPU for SaaS).
  3. Enter the variable cost incurred for each unit produced or served.
  4. Optionally add current sales to compute margin of safety.

Calculation method

Break-Even Units = Fixed / (Price - VC)

Break-Even Revenue = Units x Price

Contribution Margin = Price - VC

Margin of Safety % = (Current - BE) / Current

Break-even units are always rounded up — fractional units do not exist. The calculator stops if variable cost ≥ price (no contribution margin means infinite break-even).

Frequently Asked Questions

The break-even point is the sales volume at which total revenue exactly covers total costs — zero profit, zero loss. Above it you make money, below it you lose money. It is the most fundamental viability metric in any pricing or product decision.
Fixed costs do not change with sales volume: rent, salaries, software subscriptions, insurance. Variable costs scale per unit sold: raw materials, shipping, transaction fees, hosting per active user. Misclassifying costs skews break-even dramatically.
Contribution margin = Price - Variable Cost per unit. It is the dollar amount each sale contributes toward covering fixed costs. A higher contribution margin lowers your break-even volume. SaaS businesses typically have very high contribution margins (80%+) because variable cost per user is low.
Margin of safety = (Current Sales - Break-Even Sales) / Current Sales x 100. It tells you how much sales can drop before you start losing money. A 30%+ margin of safety is considered comfortable; below 10% is fragile.
For SaaS, break-even is usually computed in subscribers rather than units. Replace "Price per Unit" with ARPU and "Variable Cost per Unit" with per-user infrastructure and support cost. Then break-even = monthly fixed costs / (ARPU - per-user cost).

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Business & SaaS Disclaimer

Calculations are estimates for educational purposes. Real cost structures rarely fit cleanly into fixed vs. variable buckets. SaaSCalcHub is not business or financial advice. Consult business advisors, CPAs, and consultants for your specific situation.

Last updated: May 26, 2026