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Free tool · Profitability

Free break-even calculator

Know how much you need to sell to cover your costs. Try a sales forecast and see what is left.

  • Free, no account
  • Stays in your browser

Your break-even estimate

Change the figures to see how your sales target moves. Example
1
Choose a period and fixed costsUse the same period for fixed costs and forecast sales. Changing the period label does not convert your figures.
Costs that stay the same within your planned activity range, such as rent or subscriptions.
2
Define one saleA unit can be one product, one service package or one billable hour. Keep the price and cost on the same basis.
Use the price you expect to receive after discounts, excluding VAT or sales tax.
Costs that increase with each unit sold, such as materials, fulfilment or transaction fees.
3
Try a sales forecastOptional: see the result at the volume you expect to sell.
Leave blank to skip. Zero is a valid forecast; decimals work for divisible units such as hours.

Example figures — replace them with your own or clear the form.

Break-even estimate

An estimate for one product or service with constant unit price and cost. Results are before income tax and financing effects, based only on the costs entered. This is not a cash-flow forecast.

What is a break-even point?

Updated · By the Skileo team

The break-even point is the sales volume at which revenue covers the fixed and variable costs included in your calculation. Below that level, the model shows a loss; above it, sales create a profit when each sale contributes more than its variable cost. This calculator models one product or service over one period. It does not predict demand or when clients will pay.

Break-even formula and worked example
MeasureCalculationExample
Contribution per unitSelling price − variable cost100 − 40 = 60
Break-even unitsFixed costs ÷ contribution per unit3,000 ÷ 60 = 50 units
Break-even revenueBreak-even units × selling price50 × 100 = 5,000
Profit at a forecast volumeUnits × contribution − fixed costs60 × 60 − 3,000 = 600
Accounting

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How to calculate your break-even point

  1. 1Set your fixed costsChoose a period and enter the costs that do not change with each sale. Use the same currency throughout.
  2. 2Enter price and unit costDefine what one unit means, then add its selling price and variable cost. The difference is its contribution towards fixed costs.
  3. 3Check the target and your forecastReview the rounded unit target and revenue. Add your expected sales volume to compare the forecast revenue, costs and profit or loss.

Check your assumptions before using the target

  1. Keep the time period consistentMonthly rent belongs with monthly sales, not annual sales. The period selector is a label: it does not multiply or divide your inputs.
  2. Separate fixed and variable costsAvoid counting a cost twice. Split costs with a fixed charge and a usage charge between the two categories. Include your labour consistently with how you pay for it.
  3. Use the price you actually expectAllow for discounts in the price and include per-sale fees in variable costs. Keep VAT or sales tax treatment consistent; the calculator does not determine tax obligations.
  4. Check whether the volume is achievableCompare the target with available working hours, production capacity and realistic demand. Selling more may require new staff or equipment, which changes the cost assumptions.
  5. Recalculate when the model changesIf prices, supplier costs or fixed expenses change, update the estimate. For several products, work with a stable sales mix and suitable weighted averages or model each separately with carefully allocated fixed costs.

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Break-even calculator questions

Is this break-even calculator free?

Yes. Calculate and copy results without registering or paying. It runs in your browser and saves inputs locally when browser storage is available.

What is the break-even formula?

Break-even units = fixed costs ÷ (selling price per unit − variable cost per unit), when the difference is positive. Multiply the unrounded number of units by the price for exact break-even revenue. The main unit target is rounded up to a whole unit.

What counts as a fixed or variable cost?

Fixed costs stay unchanged within the activity range and period you are modelling. Variable costs increase with units sold. Rent may be fixed; materials per item may be variable. Classify labour and mixed costs according to how your business incurs them.

Why is there no break-even point?

If price is at or below variable cost, each sale contributes nothing or makes a loss before fixed costs. Positive fixed costs cannot be covered by increasing volume in that model. If fixed costs are zero, zero sales cover costs, but sales at or below variable cost do not create a positive contribution.

Can freelancers and service businesses use it?

Yes. Define one unit as a billable hour, appointment or service package. Use the price and variable cost for that same unit, and fixed costs for the chosen period. Forecast volume can contain decimals; the main target shows whole units rounded up.

Is the forecast result my net profit or cash flow?

No. It is revenue minus the fixed and variable costs you entered. It does not add omitted costs, calculate income tax or financing effects, or account for payment timing. Keep a separate cash-flow forecast.

Does Skileo receive my figures?

No. The calculation and saved inputs stay in this browser. Clear inputs removes the saved figures. Anyone using the same browser profile may be able to see them. Choosing a currency changes formatting, not exchange rates.

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