Break-Even Calculator

Your break-even point is the revenue level where total income equals total business costs. Below that line, you are losing money on every project. Knowing your break-even point prevents you from accepting work that looks profitable but actually subsidizes client overhead.

Recalculate your break-even point every quarter as expenses change. Rent increases, software price hikes, and insurance renewals all shift the line. If your pricing does not consistently clear break-even plus target profit, you need to raise rates or cut costs.

Calculate minimum revenue needed to cover costs and find your break-even point.

How to use this tool

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Break-Even Calculator

Cost Inputs

Fixed Costs per Month

Monthly fixed costs (rent, software, insurance).

Variable Cost per Unit

Variable cost per unit/service.

Price per Unit

Price you charge per unit/service.

Results

Contribution Margin per Unit$75.00

Break-Even Units27

Break-Even Revenue$2,700.00

Break-Even Calculator FAQ

What is break-even point?

The break-even point is the number of units you must sell to cover all your costs. At this point, profit is zero. Every unit sold beyond this generates pure profit.

Why is break-even important for freelancers?

It tells you the minimum sales volume you need to stay in business. Knowing this helps you price projects, set income goals, and decide when to take on extra work.

How can I lower my break-even point?

You can lower it by reducing fixed costs (software subscriptions, workspace), increasing your price per unit, or lowering variable costs (materials, outsourcing). Raise prices, cut fixed costs, or improve efficiency. For pricing strategy, read Hourly vs Fixed-Price Freelance.