Business health
Break-even calculator
Find how many units you need to sell each month to cover your costs — and how many more a new loan payment adds.
How this is calculated
Break-even units = (fixed costs + loan payment) ÷ (price − variable cost)
Price − variable cost is the contribution margin: what each sale leaves to cover fixed costs. Units are rounded up.
Worked example
$42,000 of monthly fixed costs, a $150 price and $84 of variable cost leave $66 per sale, so you break even at 637 units. Add a $2,124.70 loan payment and it rises to 669 units, or $100,350 of revenue.
Assumptions
- Monthly figures.
- Price and variable cost stay the same at every sales volume.
- Fixed costs do not include the loan payment; enter it separately.
Questions owners ask
What counts as a fixed cost?
Costs that do not change with sales: rent, salaries, insurance, software. Variable costs rise with each sale: materials, shipping, card fees.
I sell many products — what price do I use?
Use your average sale and the average variable cost per sale. The result is the number of average sales you need.
How does a new loan change my break-even?
It adds the payment ÷ margin in extra units each month. If the loan funds growth, check that the extra sales it brings exceed that number.
Read before you borrow
Guides behind the numbers.
01How to choose the right financing for the job
Learn how to choose business financing by matching the use of funds, repayment structure, timing and risk to your company’s cash-flow cycle.
Read the guide ↗
02Funding inventory without starving ad spend
A practical e-commerce inventory financing guide covering cash conversion, inventory turns, ad spend, seasonality, lender options and risk controls.
Read the guide ↗
03Equipment financing: how to fund productive assets
Learn how equipment financing works, what lenders evaluate, lease vs. loan tradeoffs, down payments, tax questions and responsible deal sizing.
Read the guide ↗Calculators give estimates for educational purposes only. They are not an offer, approval or commitment to lend. Actual rates, fees, terms and payments are set by independent providers and depend on their review. ScaleKit Financing is operated by Arch Ventures LLC and is not a lender.