Break-Even Calculator
Calculate your business break-even point in units and dollars. See fixed costs, variable costs, contribution margin, and how long until your business is profitable. Free 2026 tool.
Calculator
How it works
Calculation methodology
Break-Even Analysis for Small Business Owners
Break-even is the minimum revenue level where total costs equal total revenue — zero profit, zero loss. Every dollar above break-even generates profit at your contribution margin rate. Break-even analysis helps you make decisions: Is this business viable? How many clients do I need? What happens if I raise prices 10%?
Price Sensitivity: The Break-Even Impact of Price Changes
Raising prices increases your contribution margin and lowers your break-even point. Lowering prices does the opposite. On a business with $10,000/month fixed costs and 40% contribution margin: break-even is $25,000 revenue. Raise prices 10% (increasing contribution margin to 45%): break-even drops to $22,222. That 10% price increase means you need 11% less revenue to break even — a significant operational buffer.
SBA Guidelines on Business Viability
The Small Business Administration recommends running break-even analysis quarterly and building at least 3–6 months of fixed costs as a cash reserve before launching. For mortgage refinance break-even, use our dedicated Refinance Break-Even Calculator. Most small businesses that fail do so within 2 years, often due to underestimating fixed costs or overestimating early revenue. The break-even calculation above is the first financial model every new business should build.
Questions