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Break-even Calculator for Makers

Work out the units and revenue needed to cover fixed costs and move toward an actual profit goal.

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See what it takes to cover your costs

Results

Break-even targets

Break-even units

29.1

Break-even revenue

$932.64

Units for target profit

48.6

Revenue for target profit

$1,554.40

Contribution margin ratio

48.3%

Healthy contribution margin

Each sale contributes a positive amount toward fixed costs and profit.

Breakdown

Unit economics behind break-even

Fee per unit

$2.56

Contribution margin per unit

$15.44

Contribution margin ratio

48.3%

Break-even units

29.1

Units for target profit

48.6

How this is calculated

How your current break-even numbers are calculated

This walkthrough updates live from the form so you can see how price, costs, and fees turn into break-even units, revenue, and target-profit goals.

Open the live calculation walkthroughUses your current break-even inputs and results.
Input
Current inputs: price per unit = $32.00, variable cost per unit = $14.00, fee rate = 8.0%, fixed costs = $450.00, target profit = $300.00.
Formula
Fee per unit = price per unit x fee rate = $32.00 x 8.0% = $2.56.
Formula
Contribution margin per unit = price per unit - variable cost per unit - fee per unit = $32.00 - $14.00 - $2.56 = $15.44.
Formula
Contribution margin ratio = contribution margin per unit / price per unit = $15.44 / $32.00 = 48.3%.
Result
Break-even units = fixed costs / contribution margin per unit = $450.00 / $15.44 = 29.1.
Result
Break-even revenue = fixed costs / contribution margin ratio = $450.00 / 48.3% = $932.64.
Result
Units for target profit = (fixed costs + target profit) / contribution margin per unit = ($450.00 + $300.00) / $15.44 = 48.6.
Result
Revenue for target profit = (fixed costs + target profit) / contribution margin ratio = ($450.00 + $300.00) / 48.3% = $1,554.40.
Meaning
In plain English: with your current inputs, each sale contributes $15.44 toward fixed costs first, and only after that contribution covers your fixed costs does the business move into real profit.

How to use it

Why break-even belongs in pricing decisions

A selling price can sound fine until you see how many units it takes to support the business behind it.

Break-even turns pricing and cost assumptions into a concrete sales target you can plan around.

Contribution margin per unit is the engine behind break-even, so weak unit economics raise the target quickly.

Adding a target profit number helps you plan for viability, not just survival.

FAQ

Common questions

Short answers to the break-even questions makers ask most often.

What does break-even mean for a product business?

Break-even is the point where revenue covers all fixed and variable costs, leaving neither a profit nor a loss on the period or product line.

What fixed costs should makers include?

Studio rent, software, equipment, insurance, market fees, and other recurring business expenses should usually be included in fixed costs.

Can break-even change by sales channel?

Yes. Different channels have different fees, conversion rates, and order values, which changes the amount of revenue needed to cover costs.

Why is break-even useful before launching a product?

It helps you test whether the planned price, cost structure, and demand assumptions are realistic before you invest more time or inventory.

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