The sales revenue you need to cover every cost — fixed and variable.
Break-even is the revenue level at which your total profit is exactly zero — every euro coming in is matched by a euro of cost. Anything above break-even is real profit; anything below is loss you're absorbing from cash reserves.
Knowing the number gives you a hard floor for sales targets, a reality check when a price feels too low, and a clear answer to 'how much business do I need to stay open?'
Break-even sales = fixed costs ÷ gross margin. If your fixed costs are €15,000 per month and you make 40 cents on every euro of sales, you need €37,500 of sales just to break even. The gross margin already accounts for variable costs (materials, labour) — fixed costs are everything that bills regardless of sales.
Enter your fixed costs per month (or per year — whichever you think in)
Enter your gross margin percentage
If you don't know it, use the Profit Margin Calculator to work it out from a sample sale.
Read the break-even sales figure
Compare to your actual sales — anything above is profit, anything below is loss
Save the scenario; redo it whenever fixed costs or margin change
Fixed costs are paid regardless of sales volume: rent, salaries, software subscriptions, insurance. Variable costs scale with sales: materials, sales commission, packaging, payment processing fees. Variable costs come out of gross margin; fixed costs are what gross margin has to cover.
Break-even sales is a revenue number. Break-even units is the number of products or jobs you need to sell. Units = fixed costs ÷ contribution per unit. The sales version is easier when your prices vary (services, project work).
No — break-even is the floor, not the goal. Aim well above it so you have a buffer for cost increases, slow months, and reinvestment. A common rule of thumb is to target sales at least 50% above break-even.
Yes, with a free account. The Break-Even Calculator is in the free tier with no time limit.
Create a free account and run the calculator in the next two minutes.