Break-Even Calculator
This calculator shows how many units you need to sell, and how much revenue you need to earn, in order to cover all of your costs. It is intended for Australian SME owners pricing a product or service who want to know exactly where profit begins.
Enter all three figures above to find your break-even point.
How to use this tool
Begin with your monthly fixed costs, meaning the overheads you pay regardless of sales, such as rent, salaries, and software. Add the variable cost to produce or deliver one unit, and the price you sell that unit for. The tool calculates your contribution margin (price minus variable cost), then divides fixed costs by that margin to find how many units you must sell to break even, rounded up to the next whole unit. If your price does not exceed your variable cost, the tool will tell you that break-even is not achievable.
| Metric | Result | What It Means |
|---|---|---|
| Contribution margin per unit | Price − variable cost (AUD) | The cash each sale contributes toward fixed costs and profit. |
| Break-even units | Fixed costs ÷ contribution margin | Units to sell each month before you make any profit (rounded up). |
| Break-even monthly revenue | Break-even units × price | The sales revenue needed each month to cover every cost. |
What this means for your business
Your break-even point is the sales target below which you lose money and above which you begin to make a profit. Knowing it turns pricing and cost decisions from guesswork into arithmetic. If the number of units required looks unrealistic for your market, you have three levers available: raise your price, reduce the variable cost per unit, or lower your fixed overheads, and the calculator lets you test each one in seconds. A high contribution margin means every additional sale moves you toward profit quickly, whereas a thin margin means you depend on volume and are exposed if sales fall. It is worth rechecking the break-even figure whenever your costs change, because a rent increase or a rise in supplier prices quietly pushes the target higher. Treat it as a planning anchor, and compare it against your actual monthly sales to see how much headroom you genuinely have. The closer you trade to break-even, the less room you have to absorb a difficult month.
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