Break-Even Analysis in 2026: How Many Sales Until You Profit?

Find your break-even with our [Break-Even Calculator](/calculators/finance/break-even-calculator).

The Formula

Break-Even (units) = Fixed Costs / (Price per Unit - Variable Cost per Unit)

Online Course Example:

• Fixed costs: $5,000/month
• Course price: $297
• Variable cost per sale: $30 (payment processing, support)
• Contribution margin: $297 - $30 = $267
• Break-even: $5,000 / $267 = 18.7 sales per month

At 19 sales you break even. At 20+ you are profitable.

Break-Even by Business Type

| Business | Monthly Fixed Costs | Price | Variable Cost | Break-Even |

|---|---|---|---|---|

| SaaS software | $15,000 | $99/month | $5 | 159 users |

| Restaurant | $25,000 | $45/check | $18 | 926 checks |

| E-commerce | $8,000 | $65 | $38 | 296 orders |

| Consulting | $12,000 | $150/hour | $20 | 92 hours |

The Price-Volume Trade-Off

A 10% price increase dramatically reduces break-even volume:

E-commerce at $65 price, $38 variable cost, $8,000 fixed:

• At $65: break-even = 296 orders
• At $70 (+7.7%): break-even = 248 orders (-16%)
• At $75 (+15%): break-even = 216 orders (-27%)

Test higher prices before cutting costs.

Margin of Safety

Margin of Safety = (Actual Revenue - Break-Even Revenue) / Actual Revenue

A 20%+ margin of safety is healthy. Below 10% means the business is fragile to any revenue dip.

Calculate your margins with our [Profit Margin Calculator](/calculators/finance/profit-margin-calculator).

Related Tools

• [Startup Runway Calculator](/calculators/finance/startup-runway-calculator) — Cash runway to profitability
• [ROI Calculator](/calculators/finance/roi-calculator) — Return on business investment