Find out exactly how many units you need to sell or how much revenue you need to generate to cover all your costs.
Monthly rent, salaries, insurance, subscriptions
Selling price of one unit or average order value
Direct cost to produce or deliver one unit
Break-Even Point (Units)
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The break-even point is where total revenue equals total costs, meaning zero profit and zero loss. Every unit sold beyond this point generates profit. Understanding your break-even point helps you set sales targets, evaluate pricing changes, and assess the viability of new products or services.
If your break-even point requires more sales than your market can support, you need to either increase prices, reduce fixed costs, reduce variable costs, or find a more efficient business model.
Use the same time period for all inputs. Monthly is most practical for ongoing businesses. Annual is better for business planning and investor presentations.