Free Tool
Break-Even Calculator
Find out exactly how many units you need to sell — and how much revenue you need — before your business starts making money. Takes 30 seconds.
Business Costs
Rent, payroll, insurance, loan payments — costs that don't change with sales
Revenue per unit sold, job completed, or service delivered
Materials, supplies, direct labor — costs that vary per unit sold
To calculate your margin of safety
Results
Break-Even Units
500
units / month
Break-Even Revenue
$25,000
per month
Contribution Margin
$30
60.0% per unit
Margin of Safety
37.5%
Above break-even
What this means:
You need to sell 500 units per month (generating $25,000) before covering all costs. Each unit contributes $30 (60.0%) toward fixed costs and profit. At your current revenue of $40,000, you have a 37.5% margin of safety — revenue could drop by that much before you hit break-even.
Exploring your funding options?
Today's funding climate score reflects real Federal Reserve data on lending conditions. When you're ready to research specific options, these resources provide unbiased, official guidance.
SBA Lender Match — SBA.gov
Find SBA-approved lenders free
Business Loan Marketplace — Lendio
Compare 75+ lenders
CFPB Small Business Resources
Official consumer protection guidance
Links marked "Sponsored links" may earn us a referral fee at no cost to you. We only link to established lenders and official government resources. This is not a recommendation to use any specific lender. See our disclosures.
Why Break-Even Analysis Matters for Loan Applications
When you apply for an SBA loan or any business financing, lenders calculate your debt service coverage ratio (DSCR) — essentially how far above break-even your business operates. A margin of safety below 20% raises flags for most underwriters.
Before taking on new debt, verify that the loan payment stays comfortably within your margin of safety. Use the Prime Rate calculator to estimate your monthly SBA payment, then check it fits here.
Results are estimates based on your inputs. Actual business performance varies. Not financial advice.