# Break-Even Calculator

> The break-even point is where revenue covers all costs, so profit is zero. Divide fixed costs by contribution margin per unit (price minus variable cost): with $12,000 of fixed costs, a $49 price and $9 variable cost per unit, you break even at 300 units a month, or $14,700 in revenue.

Source: https://rankcert.com/tools/break-even-calculator
Free, no signup. Updated: 2026-10-29

## How to use it

1. Enter your fixed costs per month - rent, salaries, software that does not scale with sales.
2. Enter the price you charge per unit or per subscription.
3. Enter the variable cost of each unit to see break-even units and revenue.

## Break-even formulas

For a SaaS product, a unit is usually one paying customer per month.

| Metric | Formula | Worked example |
| --- | --- | --- |
| Contribution margin | Price - variable cost | $49 - $9 = $40 |
| Break-even units | Fixed costs / contribution margin | $12,000 / $40 = 300 |
| Break-even revenue | Break-even units x price | 300 x $49 = $14,700 |
| Contribution margin ratio | Contribution margin / price | $40 / $49 = 81.6% |

## Questions

### What counts as a fixed cost?

Anything you pay regardless of how much you sell that month: salaries, rent, base software plans, insurance. Costs that rise with each sale - payment fees, hosting per customer, shipping - are variable.

### What is contribution margin?

The price of one unit minus the variable cost to deliver it. It is the amount each sale contributes toward covering fixed costs, and after break-even, toward profit.

### What if my variable cost is higher than my price?

Then you never break even - every extra sale loses money. Raise the price or cut the per-unit cost before trying to grow volume.

### How do I calculate break-even for a SaaS business?

Treat one paying customer per month as a unit. Price is your average monthly revenue per customer, and variable cost is what serving that customer costs you - hosting, payment fees, support time.

### What is a break-even analysis used for?

Pricing decisions and planning. It tells you the minimum sales a plan needs to stop losing money, and shows how much a price change or cost cut moves that target.

### Does break-even include paying back startup costs?

Not in this monthly form. To find when you recover an upfront investment, divide the investment by monthly profit after break-even.

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