Add the numbers for your scenario.
01Break-Even Point
Units and revenue needed to cover fixed costs.
- 1Enter detailsAdd the numbers for your scenario.
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- 3ReviewCheck totals, notes and breakdowns.
How to use Break-Even Point
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Learn more about privacyBreak-even is the number that tells you whether a business idea is arithmetic or wishful thinking: how many units you must sell before you have covered the costs you pay whether you sell anything or not.
What Break-Even Point does
Divides fixed costs by contribution margin — price minus variable cost per unit — to give the units needed. Defaults to 4,000 monthly fixed costs, 49 price, 18 variable cost.
The contribution margin is what matters, not the price. At 49 against an 18 cost, each sale contributes 31 toward the fixed costs, so you need 130 sales a month before anything is profit.
The calculation
| Formula | Fixed costs ÷ (price − variable cost) |
|---|---|
| Contribution margin | Price minus variable cost per unit |
| Default fixed / price / cost | 4,000 / 49 / 18 |
| Fixed costs | Rent, salaries, software — paid regardless |
| Variable costs | Materials, shipping, fees — per unit |
| Raising price | Lowers break-even fastest |
| Cutting fixed costs | Lowers it directly |
| Not | A forecast — it says nothing about demand |
Detailed steps
- List fixed costs honestly — including your own salary if you take one.
- Work out true variable cost per unit, including payment fees.
- Read the units needed, then ask whether that many sales is realistic.
Worth knowing
Raising the price lowers break-even faster than cutting variable costs, because it widens the contribution margin from the top. Going from 49 to 55 on an 18 cost takes break-even from 130 units to 108 — a 17% drop from a 12% price rise. Discounting does the same thing in reverse, which is why sales targets set alongside a discount so often fail.
Frequently Asked Questions
What counts as a fixed cost?
Anything you pay regardless of sales — rent, salaries, software subscriptions, insurance. If it appears on the bank statement in a month you sell nothing, it is fixed.
Should I include my own salary?
If you need to be paid, yes. A business that breaks even only because the founder works unpaid is not breaking even, and the number is misleading precisely to the person relying on it.
Does break-even mean the idea works?
No. It tells you how many units are required; it says nothing about whether that many people want the thing. A break-even of 130 a month is trivial for some products and impossible for others.
Why does price affect it more than cost?
Because contribution margin is price minus cost, and a price rise increases the margin without increasing anything else. A 12% price rise can cut break-even by 17%, which is why discounting is so expensive.
Is Break-Even Point free?
Yes. The Vootkit free plan includes 5 tool runs a day. Upgrade to Vootkit Pro for unlimited daily use, an ad-free workspace and saved workflows.
Are my files uploaded?
No. Break-Even Point runs entirely in your browser — your file is processed on your own device and never sent to a server. There is nothing for us to store or delete.
Do I need to install anything?
No. Break-Even Point works in any modern browser on desktop, tablet or phone. Open the page and start.
How often can I use it? Is there a daily limit?
On the free plan you get 5 tool runs a day. When you reach the limit you'll see a prompt to upgrade, and it resets the next day. Vootkit Pro removes the cap entirely for unlimited daily use.
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