Advanced Break-Even & Profit Goal Calculator
Find the exact sales volume and revenue required to break even or hit your target monthly net profit.
What Is the Break-Even Point?
The break-even point is the exact moment where your total revenue equals your total costs — you're making zero profit and zero loss. Every unit sold beyond this point is pure profit. For any product launch, pricing decision, or new business venture, the break-even point is the first milestone you need to hit.
Break-Even & Target Profit Formulas
- Contribution Margin ($) = Selling Price − Variable Cost Per Unit
- Break-Even Units = Total Fixed Costs ÷ Unit Contribution Margin
- Target Profit Units = (Total Fixed Costs + Target Profit) ÷ Unit Contribution Margin
- Target Revenue = Target Profit Units × Selling Price
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Request Custom ProposalBreak-Even Volume & Revenue Equations
Break-Even Units (Q) = Total Fixed Costs (FC) / (Unit Selling Price (P) - Unit Variable Cost (VC))Q- Break-Even Sales Units required to reach zero profit/loss
FC- Total monthly fixed overhead (rent, salaries, software subscriptions)
P- Gross unit selling price
VC- Direct variable cost per unit (COGS, packaging, fulfillment)
CM- Unit Contribution Margin = P - VC
Direct-to-Consumer Worked Case Study
With $5,000 monthly fixed overhead, a $50.00 unit selling price, and $20.00 in direct variable production costs, your unit contribution margin is $30.00 ($50 - $20). Dividing $5,000 by $30 yields exactly 167 break-even units ($8,350.00 gross monthly revenue). Every unit sold beyond 167 generates $30.00 in pre-tax operating profit.