Break-even calculator

This break-even calculator shows how many units you need to sell, and how much revenue that is, to cover your fixed costs. It also shows your contribution margin per sale and the sales needed to reach a profit goal.

  • Break-even point in units and in sales dollars
  • Contribution margin in dollars and as a percentage
  • Optional profit target

Last updated

Break-even point

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Units to break even 28 units $500.00 ÷ ($30.00 − $12.00) = 27.78, rounded up to 28
Revenue needed
$833.33
Contribution margin
$18.00
Margin ratio
60.0%

Use the same period for all costs, for example one month. If you sell on eBay, PayPal, Square or Depop, count their fees as a variable cost (fees last checked 28 October 2026).

How to use the break-even calculator

  1. Add up your fixed costs for a period, such as a month: rent, subscriptions, storage, software. These do not change with how much you sell.
  2. Enter your average selling price per unit.
  3. Enter the variable cost per unit: what you paid for the item, packaging, shipping you cover and the platform fee on each sale.
  4. Read the units and revenue needed to break even. Add a profit target to see the sales needed to earn it.

The break-even formula

Each sale leaves a contribution margin: the price minus the variable cost of that sale. Break-even is the number of sales whose contribution margins add up to your fixed costs.

break-even units = fixed costs ÷ (price per unit − variable cost per unit)

To get the break-even point in sales dollars, divide the fixed costs by the contribution margin ratio, which is the contribution margin divided by the price.

break-even revenue = fixed costs ÷ ((price − variable cost) ÷ price)

For a profit target, add the target to the fixed costs. You cannot sell part of a unit, so the calculator rounds units up.

Worked example

You resell sneakers. Your fixed costs are $500 a month (storage, an eBay Store and software). You sell at an average of $30, and each pair costs you $12 all in.

  1. Contribution margin: $30 − $12 = $18 per pair.
  2. Break-even: $500 ÷ $18 = 27.78, so you need 28 sales a month.
  3. Revenue at break-even: $500 ÷ ($18 ÷ $30) = $500 ÷ 0.60 = $833.33.

To make $1,000 profit on top, you need ($500 + $1,000) ÷ $18 = 83.33, so 84 sales.

Fixed or variable? Common reseller costs

CostTypeWhy
What you paid for the itemVariableYou pay it once per item sold
Marketplace and payment feesVariableA percentage of each sale, such as eBay’s 13.6% in most categories
Shipping labels and packagingVariableOne per order
Store subscription, softwareFixedSame each month whatever you sell
Rent or storage unitFixedSame each month whatever you sell

Percentage fees change with the price, so work out the fee at your average price and add it to the variable cost. The eBay and Depop fee calculators give the dollar figure. eBay fees last checked 28 October 2026.

Common questions

How do you calculate the break-even point?

Divide your fixed costs by the contribution margin per unit, which is the price minus the variable cost. With $500 of fixed costs, a $30 price and a $12 variable cost, break-even is $500 ÷ $18 = 27.78, so 28 units.

How do you calculate break-even in sales dollars?

Divide the fixed costs by the contribution margin ratio. If each $30 sale leaves $18, the ratio is 60%, and $500 ÷ 0.60 = $833.33 in sales.

What is contribution margin?

It is what each sale leaves after its own variable costs, available to pay fixed costs and then profit. A $30 item with $12 of variable cost has an $18 contribution margin, or 60% of the price.

What if my price is lower than my variable cost?

Then you can never break even: each sale loses money before fixed costs are counted. Raise the price, cut the cost per unit, or drop the item.

Related calculators

Sources

See the methodology page for how Feecount builds and checks its calculators.