Planning tool
The number of sales that covers everything.
Fixed costs, price and unit cost in — break-even units, break-even revenue and how far off you are today, out. The one figure every plan should start from.
- Free, no sign-up
- Units and revenue
- Shows the gap
Break-even calculator
FreeWorth knowing
Break-even in practice.
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01
Sort every cost into fixed or variable first
Fixed costs occur whether you sell nothing or everything: rent, salaries, subscriptions. Variable costs occur per sale: goods, shipping, payment processing. Getting this split right matters more than precision in either figure — misclassify a large variable cost as fixed and the break-even point lands far below the truth.
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02
Contribution margin is what actually pays the rent
Each unit contributes price minus variable cost toward the fixed pile. At $60 contribution against $6,000 of fixed costs, 100 units clears it. Doubling contribution halves the units you need, which is why pricing and supplier negotiation move break-even far faster than selling harder does.
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03
Margin of safety tells you how much room you have
It is the gap between current sales and break-even, as a percentage. At 10% you are one bad month from losses. At 40% you can absorb a seasonal dip without panic. It is a more useful early-warning number than profit, because it moves before profit does.
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If break-even is out of reach, the model is the problem.
We help founders fix the unit economics before spending more on growth.