How to Calculate Break-Even Point (US, UK, Canada) | Free Calculator

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How to Calculate Break-Even Point (US, UK, Canada)

The break-even point is the sales level where you cover all costs and make zero profit. Below it you lose money; above it you start making profit. Essential for freelancers and small businesses in the US, UK and Canada.

Free Break-Even Calculator

Fixed costs (per month or period) Selling price per unit / project Variable cost per unit / project

Formula

Break-even units = Fixed costs ÷ (Selling price − Variable cost per unit)

Break-even revenue = Break-even units × Selling price

The part in brackets (Price − Variable cost) is your contribution margin per unit.

Example

Fixed costs $2,000/month. You sell a service for $50. Variable cost $20 per job.

Contribution = $30. Break-even = 2,000 ÷ 30 ≈ 67 units. Revenue needed ≈ $3,350.

Tips for freelancers

• Treat software subscriptions, insurance and part of rent as fixed costs.
• Variable costs might include ads, materials or subcontractors.
• Recalculate when you change prices or add tools.

Use free business calculators for pricing and tax.

Open Advanced Calculator on Invoice Luxe →

Educational only. Not financial advice. Numbers depend on your real costs and prices.