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Break-even Calculator — How Many Units Until Profit?

← Ledger HarborThe Creative Island · Island 06

The exact moment a business stops losing money — how many units, how much revenue, one calculation.

Fixed costs = rent, salaries, internet — bills that come even if you sell zero. Variable cost = per-unit cost of what you sell.

How to use this tool

  1. Enter your monthly fixed costs — rent, salaries, bills that exist even at zero sales.
  2. Enter your price per unit and your variable cost per unit.
  3. Press Calculate to see how many units cover everything.

Example

Rent + salaries = 30,000 ৳/month. You sell at 120 ৳, unit cost 70 ৳ → each sale contributes 50 ৳. Break-even = 30,000 ÷ 50 = 600 units/month (72,000 ৳ sales). Unit 601 is your first profit.

The formula

contribution = price − variable cost  |  break-even units = fixed costs ÷ contribution

What the result means

Break-even is the summit of the mountain: below it you are paying to operate; above it every extra unit drops clean profit equal to the contribution margin. If the break-even number looks unreachable for your market, the answer must come from price, cost or fixed costs — not from hope.

Frequently asked questions

What counts as a fixed cost?

Anything you pay regardless of sales: rent, salaries, internet, software subscriptions. Raw materials and packaging are variable — they scale with each unit.

My costs are monthly but I calculated for a year — does it matter?

Keep the period consistent: monthly fixed costs give monthly break-even; use yearly for yearly.

How do I lower my break-even point?

Three levers: raise price, cut variable cost (better suppliers), or cut fixed costs (smaller shop, shared space). The tool lets you test each scenario in seconds.

Is my data private?

Yes — everything is computed in your browser.

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