Know how many units you need to sell each month to stop losing money — and how much cushion you have above that line.
Break-even is the minimum volume at which sales cover all costs. Below it, you lose; above it, you generate profit. This calculator returns it in units and currency from three inputs: monthly fixed costs, unit sales price, and unit variable cost. It does not predict demand — it tells you the sales floor your operation needs to clear.
Financial disclaimerIndicative result — not professional financial advice. Consult a specialist before making investment or credit decisions.
Break-even in units (how many pieces, services, or hours you need to sell) and in currency (how much you need to bill). It also shows the unit contribution margin — what each sale contributes to covering fixed costs before generating profit.
Who it's for
For founders, business owners, and finance leads who need a quick answer on whether the model holds. For consultants, freelancers, and professional services billing per project or hour. For retailers comparing different presentations of the same product. To evaluate whether a new line, branch, or shift covers its costs before committing resources.
When to use it
Before launching a new product, opening a channel, or scaling capacity. When a supplier raises prices and you need to see how the floor moves. After closing a quarter with low sales to check whether operations remain covered. To defend a pricing decision in committee with concrete numbers.
When NOT to use it
Don't use it as a profit forecast — it only identifies the floor. It doesn't replace demand analysis: it tells you how many units you need to sell, not whether the market can absorb them. For monthly scenarios across three paths (base, conservative, aggressive), open the cash flow simulator.
What data it needs
Monthly fixed costs
Rent, payroll, insurance, software, subscriptions, maintenance, depreciation. Everything you pay even when you sell zero units.
Unit sales price
Net price at which you sell one unit. If you sell on a marketplace with a commission, subtract it before declaring the price here.
Unit variable cost
What it costs to produce or deliver ONE unit: raw materials, sales commission, average logistics cost, VAT if it applies to the input.
Current volume (optional)
Your real monthly sales. Activates the safety margin KPI: how much you can drop before hitting break-even.
Formula
Break-even (units) = Fixed costs / (Sales price − Variable cost). The denominator is the unit contribution margin: what each sale contributes to covering fixed costs. In currency: Break-even (units) × Sales price.
How to interpret the result
If your current volume is above break-even, the difference is your safety margin: how much you can drop before starting to lose. If you're below, the model doesn't hold as-is: you need to raise price, lower fixed costs, improve variable margin, or validate whether the volume is reachable. Break-even is the floor, not the goal.
How this calculator was reviewed
What you'll see, what it prevents, and where you shouldn't trust it
Every flagship calculator ships with the same editorial structure: two hypothetical worked examples with numbers, the errors it helps you avoid, the model's declared limitations, and a visible financial disclaimer. The review is signed and dated.
Hypothetical case·Case A
A bakery that finds its 800-loaf 'goal' doesn't even cover fixed costs
A bakery has $48,000 MXN/month in fixed costs (rent, payroll, utilities), sells each loaf at $25 with $11 variable cost (flour, yeast, energy per unit). Contribution margin per unit: $14. The calculator returns a break-even of 3,429 loaves/month — well above the internal 'goal' of 800. The decision changes: instead of cutting price to sell faster, review fixed costs (subletting an oven, adjusting shifts) or lift unit margin on large presentations.
Illustrative figures. This example does not represent a real company or a financial recommendation.
Hypothetical case·Case B
A consultant who sees why hourly billing without fixed costs leaves no margin
An independent consultant charges $850/hour with $80/hour variable costs (software, project materials). Fixed costs: $32,000/month (office, insurance, annual software). Contribution margin per hour: $770. Break-even: 41.5 billable hours/month. If only 35 hours bill out, they operate below the floor. Decision: raise rate, reduce fixed costs, or secure at least 45 billable hours before taking another pro bono project.
Illustrative figures. This example does not represent a real company or a financial recommendation.
Common mistakes it helps you avoid
Things a team or decision-maker might assume that this calculator forces you to verify before closing the math.
Mixing margin with profit: the contribution margin covers fixed costs before generating profit. Reaching break-even doesn't mean making money — it means starting to not lose.
Forgetting small recurring fixed costs: subscriptions, prorated annual insurance, periodic maintenance. Adding them up can move break-even by 10-20%.
Treating semi-variable costs as fixed: a bakery's electricity rises with production; the calculator assumes variable costs scale linearly with volume and fixed costs stay constant.
Not updating the model when input costs rise: an 8% flour increase moves the variable cost and shifts break-even. Recalculate at minimum quarterly.
Model limitations
What the calculator does not do, and where you need a professional or a specialized tool.
Assumes a uniform product mix. If you sell bread, coffee, and pastries at very different margins, aggregate break-even hides per-SKU behavior.
Ignores tax effects (VAT, income tax). Results are pre-tax; the actual net income you receive is lower.
Does not include financing cost: if you finance inventory or equipment with credit, the monthly interest is an additional fixed cost you declare manually.
Does not predict demand: it tells you how many units you need to sell, not whether the market can absorb them. Validate with a demand analysis.
When NOT to use this calculator
When you're about to commit to a commercial loan, long-term lease, or major hiring, don't use this calculator as the only piece of evidence. It's a viability floor; you also need a demand projection, pessimistic/aggressive scenarios, and validation with your accountant. For mid-term decisions (12-month modeling) open the cash flow simulator.
Financial, tax, accounting and legal notice
The result is an informative estimate based on the data you enter. It does not constitute financial, tax, accounting, or legal advice. For decisions that affect taxes, financing, or wealth, validate the numbers with a certified professional in your jurisdiction.
Editorial review
Reviewed by the Simúlalo editorial team
This simulator was reviewed by the people listed below before being published. The review covers the declared formula, the model's assumptions, the explicit limitations, and the absence of unsupported financial claims.
They are part of the Simúlalo editorial team, focused on building financial tools that are clear, educational, and easy to interpret.
Last updated: ·We update this page when the methodology, sources used, or simulator structure change.
This tool uses standard financial formulas and user-supplied data. To explain concepts like rates, credit, risk, or cash flow we consult public and official sources (Banxico, SAT, CONDUSEF, CNBV, Banco de España, IFRS, BIS, among others). Simúlalo is not affiliated with, sponsored by, or endorsed by these institutions.
Frequently asked questions — break-even
1Does break-even include taxes?
This calculator works with pre-tax figures. The currency result corresponds to gross sales that must cover your costs. For after-VAT and after-income-tax analysis, validate with your accountant.
2What if I have several products with different margins?
First calculate the volume-weighted average contribution margin, or use the calculator once per main SKU. For complex mixes, the pricing simulator handles several products at once.
3How do I tell fixed and variable costs apart?
Fixed cost: you pay it even when you don't sell (rent, base payroll, annual software). Variable cost: rises linearly with each sale (raw material, commission, shipping). Energy, logistics, and some services are semi-variable; place them where they best reflect your reality and review quarterly.
4Does the calculator factor in financing cost from a loan?
Not automatically. If you finance inventory or equipment, add the monthly interest to your fixed costs before calculating. Document that adjustment so break-even reflects the real cost of capital.
5How often should I recalculate my break-even?
At minimum quarterly, and any time a major cost shifts (input price increase, salary raise, supplier change) or you adjust pricing. An outdated break-even is one of the most expensive silent risks.
See how many units you need to sell to stop losing money — and how much cushion you have above that line.
Results
Break-even point
250
Sales needed to cover costs
MXN 25,000
Contribution margin
MXN 60
Contribution margin
60.0%
Analysis
You need to sell at least 250 units (MXN 25,000 in revenue) to cover your fixed costs of MXN 15,000 per month. Each unit sold above that point generates MXN 60 of net profit.
Attend this week
How many units do I need to sell to break even?
Break-even250 uContribution margin60.0%
Diagnosis
Viable model: you need to sell 250 units ($25,000) per month to avoid losing money. Your contribution margin is 60.0% — add real sales numbers to see your buffer.
Threshold
Operators with > 30% buffer above break-even are in the safe zone. Between 10% and 30% is caution. < 10% is fragile — one shock pushes you red.
Action
Your contribution margin is 60.0%. Audit the 3 lowest-margin products and prioritize trimming variable cost on the bestsellers. Small wins on the top 5 move break-even faster than touching the entire catalog.
Risk if you do nothing
Without your real sales, you don't know if you're above or below break-even. That's the difference between operating calm and operating at a loss without knowing it. Capture last month's units.