Break-Even Calculator and Payback Period Calculator
Enter fixed costs, price and variable cost per unit to see how many sales you need to break even, your margin of safety and profit. The second tab shows when an investment pays back.
Result
Enter the numbers on the left to see the break-even point.
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TL;DR: break-even point = fixed costs ÷ (price − variable cost per unit). With fixed costs of 10,000 a month, a price of 50 and a variable cost of 20, every sale contributes 30, so you need 334 sales a month to break even, which is about 16,700 of revenue. Payback period = investment ÷ monthly cash flow.
What is the break-even point?
It is the sales volume at which revenue covers all costs and profit is zero. Below it the business loses money, above it every extra sale adds its contribution margin to profit. The calculator shows the point in units and in money, so you can compare it with a realistic sales plan.
How to calculate the break-even point
- Fixed costs. Everything you pay every month regardless of sales: salaries, rent, hosting, software, marketing.
- Price per unit. One order, one month of subscription or one hour of work, without VAT.
- Variable cost per unit. What each sale costs you: materials, delivery, payment fees, the 15–30 % app store commission.
- Contribution margin = price − variable cost. Break-even units = fixed costs ÷ contribution margin; break-even revenue = units × price.
What is the margin of safety?
The margin of safety shows how far planned sales can fall before you start losing money: (planned sales − break-even sales) ÷ planned sales. 30 % or more gives room for a bad month; under 10 % means any dip in demand turns into a loss.
Break-even point vs payback period
The break-even point answers “how much do we need to sell every month”. The payback period answers “when do we get the investment back”: the month in which the cumulative cash flow turns positive. If the cash flow is the same every month, payback = investment ÷ monthly cash flow. If it grows as the product gains users, enter it month by month. The discounted payback and NPV take into account that money tomorrow is worth less than today.
For a subscription product, also check LTV and CAC; for the return on a whole IT project, use the ROI calculator. The result is an estimate for planning, not financial advice. When you have a real budget, we will estimate your MVP within one business day.
FAQ
What is the break-even formula?
Break-even units = fixed costs ÷ (price per unit − variable cost per unit). Break-even revenue = break-even units × price.
What if the price is lower than the variable cost?
Then every sale increases the loss and there is no break-even point. Raise the price or cut the cost per unit first.
What counts as fixed and what as variable costs?
Fixed costs don’t depend on sales volume: salaries, rent, hosting. Variable costs grow with every sale: materials, delivery, payment and store fees.
How is the payback period calculated?
With an even cash flow, payback = investment ÷ monthly cash flow. With a changing cash flow, it is the month in which the cumulative cash flow turns positive.
Why is the discounted payback longer?
Future money is worth less than money today. Discounting reduces each future month’s cash flow, so it takes longer to recover the investment.
Are my numbers sent anywhere?
No. The calculation runs in your browser. Data is sent only if you submit the form.