Break-even point calculator
Your break-even point is how many units you must sell to cover your fixed costs: fixed costs divided by the contribution per unit (price minus variable cost). Solve it any way and see the revenue it implies.
Using typical funnel assumptions, to show that the metric above can’t tell you if you’re winning. Your real numbers live in the full calculator.
Drop in one product and the Target ROAS calculator works your whole P&L backwards to the number that actually decides it, free, no signup.
What is the break-even point?
Break-even is the number of units you must sell to cover your fixed costs, the point where you stop losing money and start making it. Every unit sold above break-even contributes its full contribution margin to profit.
How to calculate break-even units
Two ways to lower your break-even
- Raise contribution per unit: higher price, higher AOV, or lower variable cost. Each dollar of extra contribution lowers the units you need.
- Cut fixed costs: the denominator stays the same but the target drops in proportion.
Break-even units tell you the volume; the Target ROAS calculator tells you the return on ad spend each sale needs to clear that bar and still profit.
The operator’s playbook
How a paid-media operator reads this number, not a glossary definition.
Break-even units vs break-even ROAS+
This break-even is about covering fixed costs with volume. Break-even ROAS is about each order covering its own ad cost. You need both: enough margin per order to make ads pay, and enough orders to cover the overhead.
Lower the break-even two ways+
Raise contribution per unit (price up, or variable cost down) or cut fixed costs. Raising price is usually the fastest lever, and it lifts your break-even ROAS room at the same time.
Frequently asked questions
How do you calculate the break-even point?
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Fixed costs / (price - variable cost per unit). With $10,000 fixed costs and $45 contribution per unit, you break even at about 222 units.
What is contribution per unit?
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Price minus the variable cost of one unit. It is the amount each sale contributes toward fixed costs and profit, and the denominator of the break-even formula.
How do I lower my break-even point?
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Two ways: raise contribution per unit (higher price, higher AOV or lower variable cost), or cut fixed costs. Either one reduces the units you must sell.
What is break-even in revenue, not units?
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Multiply break-even units by your price, or divide fixed costs by your contribution-margin percentage. It is the sales figure at which you stop losing money.
What is a good break-even point?
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A lower one relative to your realistic sales volume. If break-even is a small fraction of what you expect to sell, you have healthy headroom; if it is most of your forecast, the model is fragile.
Built by Yehonatan Tav, paid media for ecommerce brands spending $50k to $500k a month. Figures are illustrative; run the logic on your own numbers.