Break-Even Calculator for Small Business
A break-even calculator shows how many sales you need each month before your business stops losing money. Enter your fixed costs, your price and your variable cost per sale below. The result updates when you press Calculate, and nothing you type is stored or sent anywhere.
How the break-even point is worked out
Break-even is the point where sales cover all costs, so profit is zero. Take the price of one sale, subtract the variable cost of making that sale, and what is left is the contribution to your fixed costs. Divide your monthly fixed costs by that contribution and you have the number of sales needed.
What counts as fixed and variable
Fixed costs stay roughly the same however much you sell in a month, such as rent, salaries and software subscriptions. Variable costs rise and fall with each sale, such as materials, card fees and delivery. Some costs sit in between. Pick the closer fit and keep the same choice each time you run the numbers.
What this calculator does not do
It uses one price and one variable cost, so it suits a single product or a typical job. A business with several products needs a blended average. It also ignores tax, owner pay choices and timing of cash. For help building a fuller view, see our forecasting and cash flow planning and fractional CFO pages, or read about gross margin.
This is an estimate for planning, not financial, tax or investment advice.
Need this done for you? See our Fractional CFO & Advisory service, or pricing. English Oak Financial does not prepare tax returns, perform audits or give investment advice. This guide is general information, not tax, legal or investment advice.
Common questions
What is a break-even point?
It is the amount of sales at which total revenue equals total costs, so the business neither makes a profit nor a loss.
Does the break-even point include owner pay?
Only if you enter it as a fixed cost. Some owners include a basic pay figure so that break-even means the business covers its own costs and the owner.
Is my data saved?
No. The calculation runs in your browser and nothing you type is stored or sent anywhere.
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