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When Do You Break Even?

Calculate your break-even point. Know exactly how many sales you need to cover costs and start making profit.

Tool Input

Rent, salaries, software, utilities — costs that don't change with sales.

What do you charge per product or service?

Materials, shipping, commission — costs per unit sold.

Your Result

Frequently Asked Questions

What is break-even point?

The break-even point is where total revenue equals total costs. At this point, you're not making a profit or a loss.

What are fixed vs variable costs?

Fixed costs stay the same regardless of sales (rent, salaries). Variable costs change with each unit sold (materials, shipping).

How do I lower my break-even point?

Reduce fixed costs, increase prices, or lower variable costs. A website can help you reach more customers without proportional cost increases.

What is contribution margin?

Contribution margin is the percentage of each sale that contributes to covering fixed costs. Higher margin = faster break-even.