Step 1
Enter your fixed costs
Add launch, development, payroll, software, rent, and other costs that must be covered before the idea pays back.
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Break-Even Calculator
A break-even calculator shows the sales volume and revenue needed for a startup idea to cover fixed costs, variable costs, and reach profit. Use it to pressure-test pricing before you spend more on launch.
Contribution margin
$40
Break-even units
1,500
Months to break-even
3.8 months
Calculator
Test the profit path
Result
$73,500
Revenue needed to break even at $49 per unit and $9 variable cost.
Monthly profit target
$16,000
Safety margin
-1,100 units
Recommendation
Unit economics are testable
This plan reaches break-even quickly. Validate demand quality and keep a close watch on variable costs as sales increase.
Step 2
Add price and variable cost
Enter the revenue per unit or customer and the cost that increases with each sale.
Step 3
Set expected monthly volume
Use your sales target to estimate monthly profit and the number of months needed to recover fixed costs.
Break-even calculator FAQ
What is a break-even calculator?
A break-even calculator shows how many units or customers you need to sell before revenue covers fixed costs and variable costs.
How do you calculate break-even point?
Divide fixed costs by contribution margin. Contribution margin is price per unit minus variable cost per unit.
What counts as fixed cost?
Fixed costs are expenses that do not change directly with each sale, such as product development, salaries, rent, insurance, software, and launch costs.
What counts as variable cost?
Variable cost is the cost tied to each unit sold, such as payment fees, fulfillment, materials, support labor, usage-based infrastructure, or marketplace fees.
Can a startup use this for SaaS pricing?
Yes. Treat each subscriber as one unit, use monthly subscription price as price per unit, and include usage or support cost as variable cost per unit.
Related tool
Startup Runway Calculator
Check whether your cash runway can support the break-even timeline.
Open toolRelated tool
Burn Rate Calculator
Estimate monthly burn before comparing it to the profit path.
Open toolRelated tool
Customer Acquisition Cost Calculator
Layer acquisition cost into your unit economics assumptions.
Open toolValidate the plan
Break-even is only one checkpoint.
Idea Score helps founders compare market demand, competitors, risks, and positioning before turning a spreadsheet model into a real launch.