How to calculate your break-even point
Break-even point: the revenue that covers your costs, and when you reach it.
Your figures
Rent, insurance, wages, your own pay.
The result updates automatically.
Break-even revenue
€109,091
of annual revenue
Contribution margin
55,0%
Break-even reached
after 222 days
Cost structure
- Revenue
- €180,000
- Variable costs
- -€81,000
- Contribution margin
- €99,000
- Fixed costs
- -€60,000
- Operating result
- €39,000
Detailed analysis
Free account- Average monthly break-even
- •••••
- Margin of safety
- •••••
- If fixed costs rise by 10%
- •••••
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The break-even point is the revenue at which your business exactly covers its costs. Below it, every month deepens the loss. Above it, every extra euro of sales feeds the result.
Expressed in time, the break-even point becomes a date in the year. That date tells you when the business starts to earn money.
Gross margin versus contribution margin
The most common mistake uses gross margin. However, contribution margin captures everything that varies with volume. That includes goods for resale, but also commissions, delivery, packaging and card fees. So list each cost line and ask whether it grows with sales.
Thus, a 60% gross margin can hide a 45% contribution margin. Your break-even point then sits a third higher than planned.
Put your own pay into the break-even point
Founders often compute their break-even point without their own pay. As a result, they see a profit that does not fund them.
So include your remuneration, social contributions included, in fixed costs. The break-even point you get then shows when the business supports you.
Margin of safety comes next
Once you know your break-even point, one question follows. How far can revenue fall before you slip into the red? The answer has a name: the margin of safety.
Below 20%, your model reacts strongly to any slowdown. That signal calls for lower fixed costs, or for work on unit margin. In contrast, a wide margin gives you room to invest or hire.
Three levers to lower your break-even point
First, cut fixed costs. Second, raise the selling price if the market accepts it. Finally, reduce unit variable cost. The calculator shows how a 10% change in fixed costs moves the revenue you need.
Global mode or per-unit mode
The calculator offers two modes. In global mode, enter annual revenue and the variable cost rate. In per-unit mode, enter the selling price, the unit variable cost and the expected volume. Pick the mode that matches your data. For instance, a retailer with many products usually works globally, while a maker of one product works per unit.
Frequently asked questions
How do you calculate the break-even point?
Divide fixed costs by the contribution margin ratio. With €60,000 of fixed costs and a 55% contribution margin, break-even comes at €109,091 of revenue.
Should my own pay be in fixed costs?
Yes, always. A threshold computed without the owner's pay shows a profitability that does not exist.
What if my break-even point is too high?
Three levers: lower fixed costs, raise the selling price, or reduce unit variable cost. The calculator shows the effect of a 10% change in fixed costs on the revenue to achieve.
Does the calculator work per unit?
Yes. Switch the calculation mode to per unit, then enter the selling price, the unit variable cost and the expected volume.
Informative calculators. The 2026 rates were cross-checked against public sources but have not yet been validated by an accountant. They change every year. These calculations are neither tax nor legal advice.