Turn a monthly business goal into a sales target. This break-even calculator works for a product or a service sold at a consistent price, including ecommerce products, wholesale orders, and service packages. It separates fixed monthly costs from costs that occur with each sale.
How to use this calculator
Enter monthly overhead, price per unit or service, and the variable cost of delivering that sale. Add your target monthly profit and expected volume. Use the same monthly period for fixed costs, target profit, and expected sales. For a mixed catalog, analyze products separately or use a justified weighted average.
Formula and assumptions
Contribution per unit = selling price − variable cost. Break-even units = fixed monthly costs ÷ contribution per unit, rounded up. Target-profit units = (fixed costs + desired profit) ÷ contribution per unit, rounded up.
Worked example
With $1,000 monthly fixed costs, a $50 selling price, and $30 variable cost, each sale contributes $20. Break-even is 50 sales and $2,500 revenue. A $2,000 profit target requires 150 sales. At 100 sales, modeled profit is $1,000.
Common questions
Which costs are fixed?
Costs that remain for the month regardless of unit sales belong in fixed costs. Per-order product, delivery, processing, and variable acquisition costs belong in variable costs. Avoid including the same expense in both.
What if each sale loses money?
If variable cost meets or exceeds price, there is no positive unit contribution available to cover overhead. Increasing volume will not solve that pricing problem.
Sources and rule checks
Platform-specific assumptions reviewed September 20, 2026. Verify the requirements that apply to your account before making changes.
