What break-even means
The break-even point is where total revenue exactly covers total costs — no profit, no loss. Each unit you sell contributes its price minus its variable cost toward the fixed costs; once those contributions add up to the fixed costs, you've broken even. Every unit after that is profit.
Frequently asked questions
Why must price be higher than variable cost?
If each unit sells for less than it costs to make, no number of sales can cover the fixed costs — there's no break-even point, and the calculator will tell you.
What counts as a fixed cost?
Costs that don't change with the number of units — rent, salaries, insurance. Variable costs change per unit, like materials and packaging.
Should I round the units up?
In practice, yes — you can't sell a fraction of a unit, so round up to be safely past break-even.